What Is the Benefit for a Firm with Daily Sales

question 80

Multiple Choice

What is the benefit for a firm with daily sales of $30,000 to be able to speed up collections by three days, assuming an 8 percent annual opportunity cost of funds?

• A)$7,200 daily benefit
• B)$7,200 annual benefit
• C)$30,000 annual benefit
• D)$90,000 annual benefit Daily sales x 3 days x .08
• = $30,000 x 3 x .08

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Definitions:

Leader Style

Refers to the characteristic ways in which a leader behaves in order to influence the members of a group toward a goal.

Follower Characteristics

Refers to the traits, behaviors, and attributes of individuals who are led by others in various contexts.

Work Setting

pertains to the physical and social environment in which individuals perform their job tasks.

Path-goal Theory

A leadership theory that suggests a leader's effectiveness is based on their ability to clear paths for their followers' goals, through the use of different leadership styles.