Under the Disaster Risk Decision Tree Model,which of the Following

question 67

Multiple Choice

Under the disaster risk decision tree model,which of the following conditions would create the HIGHEST incentive to use FEWER suppliers?

• A)lower L,lower C
• B)lower L,higher C
• C)higher L,lower C
• D)higher L,higher C
• E)lower L,higher C,lower S

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Definitions:

Preferred Stock

A type of stock that provides dividends to its holders before common stocks and has priority over common stock in the event of a liquidation.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the overall amount of income tax owed to the government.

Gordon Model

A financial model that evaluates a stock's intrinsic value, based on future series of dividends that grow at a constant rate.

Growth Rate Assumption

An estimated rate at which a variable, such as a company's revenue or the economy's GDP, is expected to grow.