The Calculation of the Profitability Index (PI) Is Most Helpful

question 44

Multiple Choice

The calculation of the profitability index (PI) is most helpful for which type of decisions?

• A) Screening decisions
• B) Preference decisions
• C) Qualitative decisions
• D) Short-term decisions

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Definitions:

Window of Opportunity

A limited period during which a particular condition or combination of conditions creates a favorable situation for action or decision.

Avocations

Activities or hobbies pursued outside one's main occupation, often for enjoyment or fulfillment.

Hobbies

Leisure activities pursued for pleasure and relaxation, not as a main occupation.

Corridor Principle

The corridor principle suggests that when entrepreneurs take action and start a journey, they are able to see and access opportunities that were not visible before starting their venture.