There Are Several Disadvantages to the Payback Method, Among Them

question 18

Multiple Choice

There are several disadvantages to the payback method, among them:

• A) Payback ignores the interest that is earned during the period of time the project is in place.
• B) Payback emphasizes receiving money back as fast as possible for reinvestment.
• C) Payback is basic to use and understand.
• D) Payback can be used in conjunction with time-adjusted methods of evaluation.

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Definitions:

Small Business

An independently owned and operated company that is limited in size and in revenue depending on the industry.

Overloaded With Work

A situation where an individual has more tasks to complete than can reasonably be managed within the given time or with the available resources.

Organizational Structure

The system that outlines how activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Business Owner

An individual who owns and oversees the operation of a small business or enterprise.