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IMANET Exam CMA Topic 2 Question 58 Discussion

Actual exam question for IMANET's CMA exam

Question #: 58
Topic #: 2

[All CMA Questions]

Basic time value of money concepts concern Interest Factors Risk Cost of capital

AYes Yes No

BYes No Yes

CNo Yes No

DNo No Yes

Show Suggested Answer

Suggested Answer: C

Decentralization results in greater speed in making operating decisions because they are made by lower-level managers instead of being referred to top management. The quality of operating decisions should also be enhanced, assuming proper training of managers, because those closest to the problems should be the most knowledgeable about them.

by Micaela at Sep 22, 2022, 09:05 PM

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Leoma

2 days ago

Wait, wait, wait... are we supposed to memorize the entire periodic table for this exam? I'm feeling a little lost here.

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Gladys

6 days ago

Oh, come on! This is basic stuff. I could answer this in my sleep, even if I had a blindfold on.

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Ty

10 days ago

I'm not sure, but I think the answer might be C) No Yes No.

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Diego

13 days ago

Hmm, let me think about this. I'm pretty sure the cost of capital is involved, but I'm not sure about the risk part.

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Alica

14 days ago

Haha, this question is a piece of cake! I can practically see the interest factors in my sleep.

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Hildred

22 days ago

I agree with Nettie, because time value of money involves both interest factors and cost of capital.

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Nettie

25 days ago

I think the answer is B) Yes No Yes.

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