John Is Trying to Decide Whether to Expand His Business

question 91

Multiple Choice

John is trying to decide whether to expand his business or not.If he continues his business as it is,with no expansion,there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000.If he does expand,there is a 30 percent chance he will earn $100,000,a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000.It will cost him $150,000 to expand.The expected value of John's earnings if he chooses not to expand is:

• A)$200,000.
• B)$400,000.
• C)$250,000.
• D)$225,000.

Understand the pathology behind common sensory disorders like glaucoma.

Understand the associations between sensory problems and their physiological bases.

Explain the role of the lens in focusing on images at different distances.

Describe the function and types of receptors in the skin and their roles in detecting various stimuli.

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Definitions:

Nominal Account

A nominal account is a temporary financial account that shows the incomes, gains, expenses, or losses over an accounting period, and is reset to zero at the beginning of each new period.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Balance Sheet

A statement of finances that shows the assets, liabilities, and equity of shareholders of a corporation at a certain moment.

Revenue Account

An account that tracks the income earned from normal business operations, such as sales of goods or services, distinguished from other types of income.