What Approximate Value Should a Firm Put on Being Able

question 141

Multiple Choice

What approximate value should a firm put on being able to permanently reduce the length of its collection period by 1 day if annual sales (all on credit) are $5,000,000 and the appropriate opportunity cost is 10% annually?

• A) $1,370
• B) $15,068
• C) $13,700
• D) $50,000

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Definitions:

Job Performance

Job performance entails the effectiveness and efficiency with which an employee fulfills their job duties and responsibilities.

Leader Reward Behaviour

Actions taken by leaders to recognize and reward the performance and efforts of their team members.

Transactional Leader Behaviour

A style of leadership characterized by the exchange process between leaders and followers, where leaders provide rewards or punishments to followers based on their performance.

Transformational Leader Behaviour

Leadership practices that transform followers by increasing their awareness of the importance of their tasks and encouraging them to transcend their own interests for the good of the group.