James Has Calculated the Possible Profits from Three Different Scenarios

question 69

Multiple Choice

James has calculated the possible profits from three different scenarios for the expansion of his restaurant, each for a different amount of advertising and promotion. He has chosen to implement the scenario that offers the greatest profit. James has decided to ________.

• A) maximax
• B) maximin
• C) minimax
• D) minimin

---

Definitions:

Operating Activities

Activities directly related to the daily business operations, including cash generated from the core business as well as cash used.

Sale Of Equipment

A transaction where a business disposes of equipment assets, which may result in a gain or loss reflected in the financial statements.

Operating Activities

Operating activities involve the primary activities that a business engages in to generate earnings, including production, sales, and delivery of its goods or services.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life.