When considering the graph depicting the interrelationships between efficiency and effectiveness, where does an organization ideally want to operate?
A. Upper right-hand corner
B. Lower right-hand corner
C. Upper left-hand corner
D. Lower left-hand corner
Answer: A. Upper right-hand corner
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Another perspective on the future of cooperative strategies envisions the emergence of:
A) mergers and acquisition. B) virtual corporations. C) franchising. D) joint ventures. E) keiretsu.
Self-regulation refers to
A. a set of rules created and enforced by the FTC to which all members of an industry voluntarily agree to comply. B. a self-imposed set of rules set by a specific industry watchdog group that dictates legal and ethical behaviors. C. voluntary compliance to governmental rules and regulations set for a specific industry. D. governmental guidelines that suggests what is legal and ethical and what is not. E. an alternative to government control where an industry attempts to police itself.
A company is choosing between two projects. The larger project has an initial cost of $100,000, annual cash flows of $30,000 for 5 years, and an IRR of 15.24%. The smaller project has an initial cost of $51,600, annual cash flows of $16,000 for 5 years, and an IRR of 16.65%. The projects are equally risky. Which of the following statements is CORRECT?
A. Since the smaller project has the higher IRR, the two projects' NPV profiles cannot cross, and the smaller project's NPV will be higher at all positive values of WACC. B. Since the smaller project has the higher IRR, the two projects' NPV profiles will cross, and the larger project will look better based on the NPV at all positive values of WACC. C. If the company uses the NPV method, it will tend to favor smaller, shorter-term projects over larger, longer-term projects, regardless of how high or low the WACC is. D. Since the smaller project has the higher IRR but the larger project has the higher NPV at a zero discount rate, the two projects' NPV profiles will cross, and the larger project will have the higher NPV if the WACC is less than the crossover rate. E. Since the smaller project has the higher IRR and the larger NPV at a zero discount rate, the two projects' NPV profiles will cross, and the smaller project will look better if the WACC is less than the crossover rate.
Executive search firms should only be used by large companies because of their cost.
Answer the following statement true (T) or false (F)