Supporting poor-return proposals that fall below the minimum rate of return eventually lowers the entire company's profitability.

Question

Quizplus · Accepted Answer

Supporting poor-return proposals means investing resources in projects or initiatives that do not generate enough returns to cover their costs. This not only results in losses for the individual projects but also lowers the overall profitability of the company. Over time, continued support of such proposals can harm the financial health of a company and its ability to attract investors and grow.

Supporting Poor-Return Proposals That Fall Below the Minimum Rate of Return