Why should a risk averse manager select one project over another when both projects generate the same NPV?
A) Because the manager prefers the project which has more variance in its cash flows.
B) Because the manager prefers the project with the higher IRR.
C) Because the manager prefers the project with less risky cash flows.
D) Because the manager prefers the project which has higher standard deviation in its cash flows.
C
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Which of the following measures is NOT used to determine whether a subunit of a business is a reportable segment?
a. Revenue b. Owners' equity c. Earnings d. Assets
Efficient consumer response (ECR) incorporates quick response (QR) inventory planning, electronic data interchange (EDI), and logistics planning
Indicate whether the statement is true or false
Which of the following statements about pension funding agencies and funding instruments is true?
A) Under a trust-fund plan, individual annuities are purchased each year for employees participating in the plan. B) A separate investment account is a group pension account with a life insurance company. C) If the funding instrument is a commercial bank, the plan is called an insured plan. D) Under a guaranteed investment contract, the insurer guarantees the principal of a lump sum deposit but does not guarantee the interest rate.
In general, financial managers are concerned with which of the following?
A) Creating economic wealth B) Making investment decisions that optimize economic value C) Making business decisions that optimize economic wealth D) All of the above