During the Presentation Sarah Explained That the Reason for Downsizing

question 66

Multiple Choice

During the presentation Sarah explained that the reason for downsizing was the recession which was hitting the company badly. However, the fact of the matter was that the company had not yet experienced any loss of revenues but were anticipating bad days ahead, which could eventually lead to mass layoffs. This is an example of the ________ aspect of the communication process.

• A) framing
• B) filtering
• C) selective perception
• D) deception

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Definitions:

Capital Rationing

The process of limiting the amount of capital available for investment in order to ensure optimal returns on investment projects.

Capital Investment Analysis

The process of reviewing and evaluating potential purchases or investments in capital assets to determine their financial viability and impact on the business.

Payback Period

The duration it takes for an investment to return its initial cost, measuring the time to break even.

Internal Rate of Return Method

A capital budgeting method used to estimate the profitability of potential investments, calculated as the rate that makes the net present value of all cash flows zero.