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Joel's Shop Needs to Maintain 15% of Its Sales in Net

question 90

Multiple Choice

Joel's Shop needs to maintain 15% of its sales in net working capital. Joel's is considering a 4-year project which will increase sales from their current level of $130,000 to $150,000 the first year and to $165,000 a year for the following three years. What amount should be included in the project analysis for net working capital in year four of the project?

Apply the concept of opportunity cost in the context of trade and production decisions.

Recognize the relationship between specialization and economic efficiency, and how specialization leads to increased total output.

Understand how the production possibilities frontier can demonstrate the limitations and potential of production given current resources.

Identify circumstances under which individuals and countries benefit from trade, even when one party is more efficient in all areas of production.

Definitions:

Job Satisfaction

The level of contentment employees feel about their work, which can influence their performance, engagement, and retention.

Positive Work Outcomes

The beneficial results achieved through work effort, including increased productivity, job satisfaction, and employee engagement.

Agreeableness

A personality trait that reflects a person's tendency to be compassionate, cooperative, and harmonious in their interactions with others.

Hope

A feeling of expectation and desire for a certain thing to happen, often accompanied by optimism about the future.