Why Is the Personal Decision a Financial Manager Makes as to Whether

Multiple Choice

Why is the personal decision a financial manager makes as to whether to buy or to rent an apartment as a personal residence most like the professional decision that manager makes as to whether her firm should try to acquire a stake in a fast growing new Internet-based company?

A) Both decisions should be made based upon the trade-off between benefits and costs across time.
B) Both decisions are vital to the financial health of the decision maker.
C) Both decisions involve the purchase of assets.
D) Both decisions will be made based on what provides the greatest long-term benefit.