Danielle's Is a Furniture Store That Is Considering Adding Appliances

question 37

Multiple Choice

Danielle's is a furniture store that is considering adding appliances to its offerings.Which of the following should be considered incremental cash flows of this project?
I.utilizing the credit offered by a supplier to purchase the appliance inventory
II.benefiting from increased furniture sales to appliance customers
III.borrowing money from a bank to fund the appliance project
IV.purchasing parts for inventory to handle any appliance repairs that might be necessary

• A)I and II only
• B)III and IV only
• C)I, II, and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Operational

Pertaining to the day-to-day functions and activities necessary for an organization or process to run effectively.

Risk environments

Contexts or situations that expose individuals or organizations to hazards or potential harm related to their activities or decisions.

Assign probabilities

The act of estimating the likelihood of various outcomes or events happening.

Critical risks

Critical risks are the significant threats that could severely impact an organization's ability to achieve its objectives or continue operations.