Scenario 12-11 Zach Withdrew $400,000 Out of His Personal Savings Account and Account

question 302

Multiple Choice

Scenario 12-11
Zach withdrew $400,000 out of his personal savings account and used it to start his new cookie business.The bank account pays 3 percent interest per year.During the first year of his business,Zach sold 6,000 boxes of cookies for $2.50 per box.Also during the first year,the cookie business made monetary outlays of $9,000.You may assume that there is no opportunity cost to Zach's time.
-Refer to Scenario 12-11.Zach's economic profit for the year was

• A) $-506,000.
• B) $-6,000.
• C) $3,000.
• D) $6,000.

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Definitions:

Required Behaviour

Actions and conduct expected from individuals in a particular role or position, as defined by job descriptions, organizational norms, or cultural expectations.

High-Involvement Managerial Strategy

Approaches promoting employee engagement through participation in decision-making and problem-solving.

Job Characteristics

The attributes of a job that affect an employee's motivation and job satisfaction, including task variety, autonomy, and significance.

Broad Jobs

Positions that are characterized by wide-ranging responsibilities and tasks, allowing for flexibility in role definition and job functions.