MBA 540 Mid-term Exam
Comprehensive mid-term exam covering key business management concepts.
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MBA 540 Mid-term Exam
1. (10 pts.) Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How
would understanding the concept of opportunity costs help her make a decision?
By gaining knowledge of the opportunity costs, Ms. Freeman need to utilize her resources, constraints, implicit
costs, and explicit costs. On the off chance that she has an auto now that is separating, she will be setting a lot of
cash into it, it might be more helpful to utilize that cash for another auto installment. Regardless of the
possibility that the sum month to month spent on repairs on the old auto and the auto installment were
equivalent, they would bring about a slant of - 1. Verifiably, the security and genuine feelings of serenity that a
more up to date auto, that may have a guarantee and more present day wellbeing components, offers worth to
the open door cost. In the event that Ms. Freeman has an auto now that is not giving her inconvenience, then the
unequivocal expense of another auto installment could be utilized toward an option utilize or put something
aside for some other time. For Ms. Freeman to have the capacity to live inside of her financial plan line, her
choice ought to mirror the most possible blend of transportation and cash/living inside of her methods
(Brickley, Smith, & Zimmerman, 2009).
2. (10 pts.) Referring to the table below, hiring a driver costs $10. Each machine costs $100. Which method
should he use and why?
Method 1 = (20*10) x (10*100) = $1,200
Method 2= (50*10) x (2*100) = $700
Method 3= (100*10) = $1,000
MBA 540 Mid-term Exam
1. (10 pts.) Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How
would understanding the concept of opportunity costs help her make a decision?
By gaining knowledge of the opportunity costs, Ms. Freeman need to utilize her resources, constraints, implicit
costs, and explicit costs. On the off chance that she has an auto now that is separating, she will be setting a lot of
cash into it, it might be more helpful to utilize that cash for another auto installment. Regardless of the
possibility that the sum month to month spent on repairs on the old auto and the auto installment were
equivalent, they would bring about a slant of - 1. Verifiably, the security and genuine feelings of serenity that a
more up to date auto, that may have a guarantee and more present day wellbeing components, offers worth to
the open door cost. In the event that Ms. Freeman has an auto now that is not giving her inconvenience, then the
unequivocal expense of another auto installment could be utilized toward an option utilize or put something
aside for some other time. For Ms. Freeman to have the capacity to live inside of her financial plan line, her
choice ought to mirror the most possible blend of transportation and cash/living inside of her methods
(Brickley, Smith, & Zimmerman, 2009).
2. (10 pts.) Referring to the table below, hiring a driver costs $10. Each machine costs $100. Which method
should he use and why?
Method 1 = (20*10) x (10*100) = $1,200
Method 2= (50*10) x (2*100) = $700
Method 3= (100*10) = $1,000
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Document Details
University
Southern New Hampshire University
Subject
Business Management