A Family Business Is Considering Making an Investment in Its

question 101

Multiple Choice

A family business is considering making an investment in its manufacturing operation. Three decisions are under consideration: (1) a large investment; (2) a medium investment; and (3) a small investment. The business believes that there are three possible future outcomes for its product: (1) increasing demand; (2) stable demand; and (3) decreasing demand. The business believes that the probability for increasing, stable and decreasing product demand are 0.4, 0.5, and 0.1, respectively. The following payoff table describes the decision situation: The expected value for the small investment decision is

• A) $540,000.
• B) $400,000.
• C) $330,000.
• D) $165,000.

Compare and contrast different leadership theories and models.

Recognize the role of employee participation on job satisfaction and organizational outcomes.

Understand the significance of decision-making styles in leadership effectiveness.

Identify the characteristics of transformational leaders.

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Definitions:

U.S. Agricultural Industry

The sector of the United States economy that includes production, processing, and marketing of crops and livestock.

Supply And Demand

The economic model that describes how the price and quantity of goods and services are determined in a market based on the relationship between the amount available and the want for it.

Agricultural Products

Items produced through farming and agriculture, including crops, livestock, and other raw goods used for food, fabric, or industry.

Price Inelastic

A characteristic of a good or service whose demand does not significantly change when its price changes.