Use the Following to Answer Questions

question 192

Multiple Choice

Use the following to answer questions:
Figure: Marginal Benefits and Marginal Costs
-(Figure: Marginal Benefits and Marginal Costs) Look at the figure Marginal Benefits and Marginal Costs. More time spent studying economics adds points to economics scores (MB) but subtracts points from accounting scores (MC) . At four hours of study, Claudia will maximize her benefit from study time because:

• A) MB > MC.
• B) MB = 20 and MC = 5.
• C) the difference between total benefits and total costs is maximized.
• D) sunk costs are minimized.

Understand the role of entrepreneurial leadership in recognizing opportunities and enhancing creativity.

Identify and describe the characteristics of creative people and ideas.

Understand the strategies and structures that support managing creative workers effectively.

Recognize the importance of creativity in organizational development and the role of leadership.

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Definitions:

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Short Run Exchange Rate Risk

The potential for financial loss resulting from fluctuations in the exchange rate between currencies in the near term.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.