Nominal scales are used for classification and identification purposes only

One weakness of payback period approach is its failure to recognize cash flows that occur after the payback period

Indicate whether the statement is true or false

Executives at Energex Enterprises are trying to determine whether it would be better to own and operate a factory overseas or to contract with a foreign firm to do this through a licensing agreement

Which theory would most likely help the Energex executives make this decision? A) ownership advantage theory B) internalization theory C) eclectic theory D) relative factor endowments