Mid-level managers in a country with low uncertainty avoidance are ________ than managers from a high uncertainty avoidance country
A) more likely to make risky decisions
B) less likely to make risky decisions
C) less likely to make foolish decisions
D) more likely to avoid making decisions
Answer: A
Explanation: Low uncertainty avoidance means that managers tend not to shy away from uncertainty–usually resulting in them being more likely to make risky decisions. Managers seeking to avoid risk might avoid making any kind of decision. Foolish decisions might be risky, so being less likely to make a foolish decision would also be incorrect.
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Which of the following financial institutions were originally established to provide mortgage loans to depositors?
A) Commercial banks B) Savings and loan associations C) Internet banks D) Credit unions
Which of the following statements is FALSE?
A) Sensitivity analysis allows us to explore the effects of errors in our estimated inputs in our net present value (NPV) analysis for the project. B) To compute the net present value (NPV) for a project, you need to estimate the incremental cash flows and choose a discount rate. C) Estimates of the cash flows and cost of capital are often subject to significant uncertainty. D) When we are certain regarding the input to a capital budgeting decision, it is often useful to determine the break-even level of that input.