The More Uncertain the World Appears

question 121

Multiple Choice

The more uncertain the world appears:

• A) the harder it is for investors to receive definite signals about where to invest their resources.
• B) the easier it is for investors to receive definite signals about where to invest their resources.
• C) the lower the expected return necessary to justify an investment.
• D) the lower the payoff to waiting.

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Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the goods and transportation costs until the buyer receives the goods.

FOB Shipping Point

A shipping term indicating that the buyer assumes the risk and transportation costs for goods once they have left the seller's premises.

Merchandise Inventory

Finished goods available for sale to customers in a retail or wholesale business.

Periodic Inventory System

An inventory accounting system where inventory levels are updated and cost of goods sold is calculated at the end of an accounting period.