Professional judgment must be used when evaluating business risk.

Answer the following statement true (T) or false (F)


True

Business

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According to research on perceived organizational support, which of the following is recognized as a category of beneficial treatment ______.

A. fairness B. coworker trust C. reduced supervisor support D. lower organizational rewards

Business

What is the Profitability Index of the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks. Initial project investments were $13B

Assume that the initial investment was paid on Dec 31, 2008. Assume that Airbus will produce 60 aircraft per year for five years. Each aircraft will be sold for $230M and total operating costs are 75% of revenues. Assume that revenues and costs occur at year-end with the first revenues (and costs) occurring on Dec 31, 2009. Assume that Airbus' cost of capital is 11%. Calculate the Profitability Index as of Dec 31, 2008. Assume that there are no terminal year cash flows. A) 0.935 B) 0.981 C) 0.995 D) 1.333 E) 1.981

Business

A lab at the DeBakey Institute orders 150 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Suppose the mean cost of rats used in lab experiments turned out to be $20.00 per week. Interpret this value

a. Most of the weeks resulted in rat costs of $20.00 b. The median cost for the distribution of rat costs is $20.00 c. The expected or average costs for all weekly rat purchases is $20.00 d. The rat cost that occurs more often than any other is $20.00

Business

Just as with buying a car, look at your budget to determine how much you are willing to spend on the purchase of a what?

A) Lawyer Fee B) Rental Agreement C) Orkin Contract D) Banker Fee E) House

Business