John Is Trying to Decide Whether to Expand His Business

question 60

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.John expects the value of his earnings to be ________ if he expands and ________ if he does not expand.

• A) $320,000; $200,000
• B) $170,000; $50,000
• C) $120,000; $200,000
• D) $30,000; $200,000

---

Definitions:

Back Region

A term in sociology that describes areas where individuals can relax and be themselves, away from the front region where they perform roles under social scrutiny.

Impression Management

Strategies used by individuals to influence perceptions of themselves by others, often to increase social standing or approval.

Tactical Impression Management

Strategies individuals employ to influence how they are perceived by others, often to gain social approval or advantage.

Aligning Actions

Actions people use to define their apparently questionable conduct as actually in line with cultural norms, thereby repairing social identities, restoring meaning to situations, and reestablishing smooth interaction.