Steve Is Employed as an Accounts Manager at an Advertising

question 105

Multiple Choice

Steve is employed as an accounts manager at an advertising agency.Steve has been offered a similar position at another firm for an equivalent salary and benefits package.When making his decision,Steve should focus primarily on nonfinancial compensation factors.Which of the following questions is LEAST relevant to Steve's decision to remain at his current job?

• A) Is the job meaningful and challenging?
• B) Is the employee stock option plan risky?
• C) Is there a possibility for increased responsibility?
• D) Is there an opportunity for growth and achievement?

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Definitions:

Total Revenues

The total amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Total Costs

An alternate formulation for the sum of all expenses incurred in the production of goods or services, reflecting both fixed and variable components.

Profit

The financial gain obtained when the revenue from business activities exceeds the costs and expenses associated with operating the business.

Economic Profit

The total revenue from operations minus both the explicit and implicit costs; it's a measure of profitability factoring opportunity costs.