Mike Has Made a List of Pros and Cons and Is

question 14

Multiple Choice

Mike has made a list of pros and cons and is experiencing conflict with regards to whether he should leave the security of his current job and start his own business. He is in the _____________ stage of change.

• A) pre-contemplation
• B) contemplation
• C) preparation
• D) action

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Definitions:

Residual Income

The income that remains after deducting all costs, including the cost of capital, from the revenues of a business, investment, or project.

Invested Capital

The total amount of money that has been invested into a company by its owners and creditors, often used in ROI calculations.

Investment Centre

A business unit or division within an organization that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, used to assess a company's financial health.