What Criteria Must Be Met for Accepting Any Capital Expenditure

question 8

Essay

What criteria must be met for accepting any capital expenditure proposal with respect to minimum rate of return on investment?

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Definitions:

Three Needs

A psychological theory suggesting there are three primary needs that motivate human behavior: the need for achievement, affiliation, and power.

Federated Organization

A type of organization characterized by a central governing body connected to independent units or member entities, allowing for both centralized control and decentralized operations.

Takeovers

The acquisition of control over a company by another entity, typically through the purchase of a majority of its stock shares.

Accountability

Accountability in organizational contexts involves the obligation of individuals or entities to explain and accept responsibility for their actions, decisions, and outcomes.