With Projects for Which There Is a High Degree of Uncertainty

question 14

Multiple Choice

With projects for which there is a high degree of uncertainty about the estimated durations for activities, it is possible to use three time estimates:

• A) an original estimate, a petrified estimate, and a most likely estimate.
• B) an optimistic estimate, a pessimistic estimate, and a most likely estimate.
• C) an optimized estimate, a primary estimate, and a most likely estimate.
• D) an opportunity estimate, a pragmatic estimate, and a most likely estimate.

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Definitions:

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers, indicating the efficiency of the company’s credit and collection policies.

Current Ratio

A measure of a business's capability to meet its obligations due in less than one year, focusing on its short-term financial health.

Company

A legal entity formed by individuals, stockholders, or shareholders, with the purpose of operating for profit.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund day-to-day operations.