A New Business Opportunity Has a 70% Chance of Being

question 28

Multiple Choice

A new business opportunity has a 70% chance of being worth $500,000 next year and a 30% chance of being worth $100,000. The appropriate expected rate of return is 10%.
-Refer to the information above. Assume that the new opportunity will be financed with a $150,000 bank loan. What is the maximum amount of his own money that an owner should be
Willing to invest in this business?

• A)$195,455
• B)$345,455
• C)$215,000
• D)$230,000

Recognize the definition and measurement of productivity in a business context.

Comprehend the importance of quality and its impact on organizational costs and resources.

Identify different types of quality control and their significance in quality management.

Understand the role and principles of Total Quality Management (TQM) strategies.

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Definitions:

Overpopulation

A condition where an area's population exceeds the carrying capacity of its environment, leading to environmental degradation and diminished quality of life.

Infant Mortality

The death of children under the age of one year, measured as the number of deaths per 1000 live births in a given year or region.

Malnutrition

A condition resulting from not consuming enough nutrients, leading to various health problems related to undernourishment or lack of essential dietary elements.

Illegal Drug Use

The consumption of substances that are prohibited by law due to their potential harm to individuals' health and society.