Which of the Following Is Not True About an Organization's

question 127

Multiple Choice

Which of the following is not true about an organization's process strategy?

• A) It will have long-run impact on efficiency and flexibility of production.
• B) It is the same as its transformation strategy.
• C) It must meet various constraints, including cost.
• D) It is concerned with how resources are transformed into goods and services.
• E) It is not concerned with volume of output.

---

Definitions:

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used to evaluate the profitability of potential investments.

Accounting Basis

Refers to the method of recording accounting transactions; either on a cash basis or on an accrual basis.

Required Return

The minimum return an investor anticipates or requires from an investment to make it worthwhile.

Ackerman Geometry

The front-end setup that allows a vehicle to steer so that the tires track freely during a turn. During a turn, the inboard wheel on a steer axle has to track a tighter circle than the outer wheel. Ackerman geometry is also known as toe-out during turns and it allows the inner and outer wheels to turn at different angles so that both wheels can roll through a turn without tire scrubbing.