What are the four limitations of the net present value technique?
What will be an ideal response?
1. Investments with the same net present value may have significantly different projected lives and different salvage values. 2. Investments with the same net present value may have different cash flows. Different cash flows may make substantial differences in the company's ability to pay its bills.
3 . The assumption is that we know future interest rates, which we do not. 4. Payments are always made at the end of the period (week, month, or year), which is not always the case.
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An advanced form of decision support system, called expert systems, uses artificial intelligence procedures to incorporate expert judgment
Indicate whether the statement is true or false
Bad debts are recognized according to which of the following expense recognition principles?
a. Immediate recognition b. Direct matching c. Systematic and rational allocation d. Critical event recognition
An American business manager makes a bribe to a foreign government official in a host country where such a bribe is not illegal. What would happen?
a. The manager will be punished by the host country because it must enforce American laws. b. Even if caught, the manager will not be punished because he did not break the host country’s laws. c. If caught, the manager may end up in an American jail because the bribe breaks American law even though it did not happen on American soil. d. At most, the American manager will have to pay a fine in the United States.
The supervisor must be tolerant of and sensitive to the differences among employees of other cultures and must work with his/her subordinates in getting them to be sensitive to the differences among employees of other cultures
Indicate whether the statement is true or false.