Precautionary measures to meet uncertainty can take one or all the three following distinct forms:
Precautions for
Uncertainties
Precautionary measures to meet
uncertainty can take one or all the three following distinct forms:
1. Measures can be adopted to reduce the variability or dispersion of income
2. Measures can be adopted to prevent profit from falling below some minimum level
3. Measures can be adopted to increase the firm’s ability to withstand unfavourable economic outcomes. Tags : Financial Management - Capital Budgeting – A Conceptual Framework
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