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MBA 540 Mid-term Exam

Comprehensive mid-term exam covering key business management concepts.

Isaac Ross
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1MBA 540 Mid-term Exam1. (10 pts.) Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. Howwould understanding the concept of opportunity costs help her make a decision?By gaining knowledgeoftheopportunitycosts, Ms. Freeman need to utilizeher resources, constraints, implicitcosts, and explicit costs.On the off chance that she has an auto now that is separating, she will be settinga lot ofcashinto it,it might be more helpful to utilize that cash for another auto installment. Regardless of thepossibility that the sum month to month spent on repairs on the old auto and the auto installment wereequivalent, they would bring about a slant of-1. Verifiably, the security and genuine feelings of serenity that amore up to date auto, that may have a guarantee and more present day wellbeing components, offers worth tothe open door cost. In the event that Ms. Freeman has an auto now that is not giving her inconvenience, then theunequivocal expense of another auto installment could be utilized toward an option utilize or put somethingaside for some other time. For Ms. Freeman to have the capacity to live inside of her financial plan line, herchoice ought to mirror the most possible blend of transportation and cash/living inside of her methods(Brickley, Smith, & Zimmerman, 2009).2. (10pts.) Referring to the table below, hiring a driver costs $10. Each machine costs $100. Which methodshould he use and why?Method 1 = (20*10) x (10*100) =$1,200Method 2= (50*10) x (2*100) =$700Method 3= (100*10) =$1,000

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Document Details

University
Southern New Hampshire University
Course
MBA 540
Subject
Business Management

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