SMITH MINI CASE: Nathan Smith Is Single and Lives in Detroit

question 5

Multiple Choice

SMITH MINI CASE: Nathan Smith is single and lives in Detroit, where he works on the assembly line at the local automobile manufacturing plant and is a member of the Automobile Workers Union. He views work as a means to buy things to enhance his leisure time and recently purchased a new television so that he could better watch his favorite team, the Detroit Lions, play football. Nathan has always followed the Lions, largely because his dad was a big Lions fan.
-In the SMITH MINI CASE, which of the following is most likely to describe Nathan?

• A) Nathan uses his credit card as a convenient substitute for cash.
• B) Nathan perceives himself to be empowered in the sense that he can achieve whatever he sets his mind to.
• C) Nathan saves money primarily in the interest of safety and security.
• D) Nathan is likely to attend the theater and concerts.
• E) Nathan prefers to spend his leisure time on cerebral activities, like reading or visiting museums.

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Definitions:

Idle Plant Assets

Fixed assets that are not currently in use for production, operations, or providing services, often due to reduced demand or operational changes.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, excluding investment and non-operational assets.

Controllable Margin

The portion of profit or income that can be directly controlled or influenced by management decisions.

Controllable Costs

Controllable costs are expenses that can be regulated or influenced by decisions made by managers or individuals within a company, allowing for adjustments based on operational needs.