All Else Being Equal, a Company Would Choose to Invest

question 119

Multiple Choice

All else being equal, a company would choose to invest in a capital asset if which of the following is TRUE?

• A) If the payback period equals the amount invested
• B) If the expected accounting rate of return is less than the required rate of return
• C) If the average amount invested is equal to the net cash inflows
• D) If the expected accounting rate of return is greater than the required rate of return

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Definitions:

Labor Contract

An agreement between unions and employers regarding wages, working conditions, and other employment terms.

Unionization Process

The procedure through which employees in a workplace form or join a union in order to collectively negotiate with their employer regarding wages, work conditions, and other employment terms.

National Labor Relations Board

An independent US government agency charged with enforcing US labor law in relation to collective bargaining and unfair labor practices.

Certification Election

A process supervised by a regulatory body that allows employees to vote on whether or not they wish to be represented by a labor union.