Place the Following Investment Decisions in Order from the Lowest

question 46

Multiple Choice

Place the following investment decisions in order from the lowest risk to the highest risk:
(a) purchase of replacement machinery
(b) new product in a foreign market
(c) new product in the local market
(d) repair of existing machinery

• A) b, c, a, d
• B) d, a, b, c
• C) d, b, a, c
• D) d, a, c, b

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Definitions:

Gantt Load Chart

A graphical representation of a project schedule, showing the start and finish dates of elements as well as their relationships to each other.

Service Systems

The configuration of people, technology, organizations, and information designed to deliver services that create value for the service provider and its customers.

Assignment Method

A mathematical technique used in operations research and decision making to allocate resources or tasks to recipients or jobs in an optimal way.