Scenario: Sarah Has to Choose Between Renting a Hotel Room

question 44

Multiple Choice

Scenario: Sarah has to choose between renting a hotel room for 2 days and renting a hotel room for 3 days.
-Refer to the scenario above.If Sarah is optimizing using marginal analysis,then which of the following statements is true?

• A) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the cost of staying for the third day.
• B) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the benefits of staying for the first 2 days.
• C) She will rent the hotel room for 3 days if the net benefit of staying for 3 days exceeds the net benefit of staying for 2 days.
• D) She will rent the hotel room for 3 days if the cost of staying for the first 2 days is less than the cost of staying for the third day.

Differentiate between formal and informal communication and their appropriate contexts.

Understand the impact of high-context and low-context cultures on communication strategies.

Understand the basic concepts of financial risk and business risk.

Comprehend the impact of capital structure on a firm's value and the cost of capital according to various theories including M&M Propositions and Static Theory.

---

Definitions:

Romantic Love

A complex emotional and physiological experience, typically involving attraction, attachment, and idealization of another person.

Merchandise Inventory

Goods held by a company for the purpose of resale to customers in the regular course of business.

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period, used to calculate the cost of goods sold.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.