A Firm Has an Average Investment of $100,000 During the Year.During

question 60

Multiple Choice

A firm has an average investment of $100,000 during the year.During the same period,the firm generates an after-tax income of $16,000.If the cost of capital is 15%,what is the economic profit?

• A)+$16,000
• B)+$15,000
• C)+$1,000
• D)-$1,000

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Definitions:

People-friendly

Describes policies, environments, or technologies that are designed to be considerate and accommodating to the needs and well-being of individuals.

CEO

Chief Executive Officer; the highest-ranking individual in a company or organization, responsible for overall management and decision-making.

Socialization Process

The method by which individuals learn and adapt to the norms and behaviors appropriate to their role within a society or organization.

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Organizational environments characterized by shared values, beliefs, and norms that strongly influence the behavior of individuals within the group.