Identifying and developing options requires strong conceptual skills by managers

Indicate whether the statement is true or false.


Answer: TRUE
Explanation: Identifying and developing options requires solid conceptual skills. Managers may need to break old thinking habits and throw away long-held assumptions in order to find promising solutions to tough problems.

Business

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Which of the following statements about the risk pooling is correct?

A) Risk pooling works best if the number of parties involved is small. B) Risk pooling reduces the standard deviation of the loss distribution. C) Risk pooling increases the loss probability. D) Risk pooling can be used to increase the cost of bearing risk.

Business

One of the most difficult issues in project development is ________

A) cost estimation B) time estimation C) scheduling D) training

Business

One way to handle repeating data within an entity is to separate the repeating data into another entity, called a weak entity

Indicate whether the statement is true or false

Business

Carmel Corporation is considering the purchase of a machine costing $36,000 with a 6- year useful life and no salvage value. Carmel uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average investment?

A) $6,000. B) $7,000. C) $18,000. D) $21,000. E) $36,000.

Business