Gemini Inc

question 14

Multiple Choice

Gemini Inc.'s optimal cash transfer amount, using the Baumol model, is $60,000.The firm's fixed cost per cash transfer of marketable securities to cash is $180, and the total cash needed for transactions annually is $960,000.On what opportunity cost of holding cash was this analysis based?

• A) 19.2%
• B) 10.4%
• C) 6.3%
• D) 12.1%
• E) 9.6%

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Definitions:

Absenteeism

The frequent absence from work or other duties without good reason, which can impact productivity and operations.

Honeymoon Effect

A phenomenon where newly-hired employees experience a high level of satisfaction and positivity towards their job, which can temporarily boost their performance.

Procedural Fairness

A concept emphasizing the importance of fair and impartial processes in decision-making, leading to increased acceptability of decisions.

Interactional Fairness

The perceived fairness of the interpersonal treatment people receive when organizational procedures are implemented.