Not all EC investments need to be formally justified.Each of the following is a case where formal evaluation may not be needed except A) when the value of the investment is relatively small for the organization. B) when competitors have made that type of investment. C) when the relevant data are not available, are inaccurate, or are too volatile. D) when the EC project is mandated and must be done regardless of the costs and benefits.

Question

Quizplus · Accepted Answer

Formal evaluation may not be needed for small investments (A), when data is unreliable (C), or when a project is mandated (D). However, just because competitors have made a similar investment (B) does not mean formal evaluation can be skipped; understanding the specific benefits and risks for the organization is still crucial.

Not All EC Investments Need to Be Formally Justified