Binary Decision Variables

question 72

Multiple Choice

Binary decision variables:

• A) are either 0 or 1
• B) must be integers
• C) may be continuous
• D) may be negative

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Definitions:

Capital Restructuring

A financial strategy involving the reorganization of a company's capital structure, often through changes in debt, equity, or both, to improve financial stability or meet specific objectives.

Personal Leverage

The use of borrowed funds by an individual to increase the potential return of investment.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, comparing the value of all cash inflows and outflows over time, discounted back to their present value.

Indirect Bankruptcy Costs

The costs associated with bankruptcy that are not directly related to legal or administrative expenses, such as lost sales, customers, or suppliers.