Which of the Following Is Not an Important Qualitative Factor

question 51

Multiple Choice

Which of the following is not an important qualitative factor to consider in the capital budgeting decision?

• A) regulations that mandate investment to meet safety, environmental, or access requirements.
• B) technological developments within the industry may require new facilities to maintain customers or market share at the cost of lower ROI for a period of time.
• C) commitment to a segment of the business that requires capital investments to achieve or regain competitiveness even though that segment does not have as great an ROI as others.
• D)all of the above are important qualitative factors to consider.

---

Definitions:

Open-Economy Macroeconomic Model

An analytical framework considering the interactions between the domestic economy and the rest of the world, including trade, capital flows, and exchange rates.

Budget Deficit

A situation where a government's expenditures exceed its revenues, leading to a shortfall that must be financed through borrowing.

Budget Surplus

A financial situation where a government's or organization's revenue exceeds its expenditures over a given period.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the true yield to lenders or investors.