Robert Is an Operating Manager for a Large Organization

question 15

Multiple Choice

Robert is an operating manager for a large organization.Robert's organization will be engaging in a joint venture.He has been assigned the responsibility of overseeing his firm's participation in the joint venture.As such,Robert's supervisor has asked him to participate in the negotiation process.Even if Robert is not familiar with the negotiations,his presence at this stage is essential to

• A) ensure that the definition and understanding of the alliance's goals are clear and consistent
• B) give the joint venture partner an opportunity to accept or reject Robert's leadership of his firm's participation in the partnership.
• C) communicate Robert's extensive familiarity with his own firm to the joint venture partner.
• D) make him feel important and test his capacity to operate in a stressful situation.

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Definitions:

Total Cost

The sum of fixed and variable costs incurred by a business in the production of goods or services.

Profit

The financial gain achieved when the revenue gained from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profit

The disparity between total income and total outlays, considering both manifest and concealed costs.

(P - ATC)q

The formula representing profit in economic terms, where P stands for price, ATC for average total cost, and q for quantity produced or sold.