Asked by Taylor Casbon on Jun 26, 2024
Verified
Which one of the following is the best example of two mutually exclusive projects?
A) Planning to build a warehouse and a retail outlet side by side.
B) Buying sufficient equipment to manufacture both desks and chairs simultaneously.
C) Using an empty warehouse for storage or renting it entirely out to another firm.
D) Using the company sales force to promote sales of both shoes and socks.
E) Buying both inventory and fixed assets using funds from the same bond issue.
Mutually Exclusive Projects
Investment opportunities such that if one is chosen, the others must be rejected.
Warehouse
A large building where goods are stored before they are distributed to stores or customers.
Equipment
Tangible assets or physical items used in the operation of a business, such as machinery, tools, or computers.
- Grasp the concept and implications of mutually exclusive projects.
Verified Answer
BP
Benedict PasadillaJun 30, 2024
Final Answer :
C
Explanation :
Mutually exclusive projects are those where the acceptance of one project prevents the acceptance of another. In option C, using the warehouse for storage excludes the possibility of renting it out, and vice versa, making them mutually exclusive.
Learning Objectives
- Grasp the concept and implications of mutually exclusive projects.