Scientific management is the application of scientific principles to the management of work and workers.
Indicate whether the statement is true or false
Question 2 - Ashton is working on a project at PowerTek Inc, a well-known multinational corporation. He is using capital budgeting to estimate the project's future cash flows. He finds that the present value of the estimated future cash flows is greater than the cost of the project. How likely is he to gain approval from the board?
A) He will quite certainly gain approval since the project has a positive net present value.
B) Approval is probable but not likely as he failed to account for the time value of money.
C) He will not gain approval as he failed to consider whether the project is leading edge or not.
D) Approval is probable but not likely as the project has been constructed on estimates instead of facts.
Question 3 - Surplus funds of a not-for-profit organization are distributed to members of the board of directors.
Indicate whether the statement is true or false
Question 4 - The number of times a company sells and replaces its merchandise inventory in one year is known as
A) inventory turnover.
B) net purchases.
C) FIFO inventory.
D) LIFO inventory.
Question 5 - Motivation, morale, and satisfaction of employees' needs are interrelated.
Indicate whether the statement is true or false
Question 6 - A project with a negative net present value should be:
A) rejected as it does not take the time value of money into account.
B) rejected since the expected future cash flows from the project are less than the cost of the investment.
C) accepted since the net present value does not alter the company's capital budgeting.
D) accepted since the expected future cash flows from the project exceed the cost of the investment.
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