Brad's Organization Just Had the Best Year It Has Ever

question 36

Multiple Choice

Brad's organization just had the best year it has ever had in terms of profits.Brad and his fellow employees were expecting raises at the end of the year as a result of their hard work; however,management did not give the employees raises.As a result,many of Brad's fellow employees formed a union and went on strike.Brad works at an organization that has a:

• A) strong and healthy culture.
• B) strong and unhealthy culture.
• C) weak and healthy culture.
• D) weak and unhealthy culture.

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Definitions:

Variable Cost

Expenses that fluctuate with production volume, such as direct materials and direct labor costs.

Fixed Expenses

Fixed expenses are recurring costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Net Present Value

Net present value is a financial calculation that determines the worth of a project or investment by discounting its future cash flows to the present value using a specific discount rate, to assess its profitability.

Present Value Factor

A coefficient used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.