Use the Information Below to Answer the Following Question(s)

question 45

Multiple Choice

Use the information below to answer the following question(s) :
The owner of the Krusty Krab is considering selling his restaurant and retiring.An investor has offered to buy the Krusty Krab for $350,000 whenever the owner is ready for retirement.The owner is considering the following three alternatives:
1.Sell the restaurant now and retire.
2.Hire someone to manage the restaurant for the next year and retire.This will require the owner to spend $50,000 now,but will generate $100,000 in profit next year.In one year the owner will sell the restaurant for $350,000.
3.Scale back the restaurant's hours and ease into retirement over the next year.This will require the owner to spend $40,000 on expenses now,but will generate $75,000 in profit at the end of the year.In one year the owner will sell the restaurant for $350,000.
-If the discount rate is 15%,then the alternative which the owner should choose is:

• A)#1.
• B)#2.
• C)#3.
• D)either #1 or #2.
• E)either #1 or #3.

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Definitions:

Avoidable Turnover

Employee departures that could have been prevented by addressing underlying issues, such as job dissatisfaction or workplace conflicts.

Employee Training

The process of providing workers with the knowledge, skills, and abilities required to perform their job effectively.

Raising Morale

Taking actions that have a positive impact on employee satisfaction and work performance, including introducing a group bonus, allowing job autonomy, providing training, assigning whole tasks, gaining direct feedback from users, and increasing group interaction. See morale.

Morale Problem

Issues related to the decline in confidence, enthusiasm, and discipline among members of a group or team.