The primary disadvantage of the payback period is that:

A. it disregards the time value of money.
B. it is highly complex.
C. it does not allow the comparisons of alternatives.
D. it incorporates all cash flows that occur after the payback period.


Answer: A

Business

You might also like to view...

Leadership is the ability to ______ employees to voluntarily pursue organizational goals.

A. force B. reward C. request D. compensate E. influence

Business

Carriveau Corporation has two divisions: Consumer Division and Business Division. The following data are for the most recent operating period: Consumer DivisionBusiness Division Sales$331,000$245,000 Variable expenses$102,610$58,800 Traceable fixed expenses$149,000$139,000 The company's common fixed expenses total $63,360.The Business Division's break-even sales is closest to: (Round your intermediate calculations to 2 decimal places.)

A. $182,895 B. $266,263 C. $488,153 D. $218,355

Business

Which of the following statements about the branding guidelines for a small business is true?

A) A small business must creatively conduct low-cost marketing research. B) A small business must avoid leveraging secondary brand associations. C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image. D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers. E) A small business must focus on building more than two strong brands based on a number of associations.

Business

Which of the following is the best example in which to apply causal research?

A) the Andrew Jergens Company periodically conducting surveys to measure consumer's perceptions, attitudes and use of soap bars and related personal care products B) to determine the relationship between sales promotion and advertising expenditures and sales of Mercedes C) to gain insights on why Nokia is losing market share in Asia D) to understand how consumers evaluate the Home Depot brand compared to competing brands E) one-on-one depth interviews matching respondents and interviewers by gender

Business