Samantha Is a Recent Fashion Graduate

question 123

Multiple Choice

Samantha is a recent fashion graduate.She started her own apparel store with an investment of $300,000.In the first year she made a profit of $60,000.If she had taken up a job as a fashion editor for a magazine, she would have earned $50,000 as salary per year.Also, she could have invested her capital, $300,000, in treasury bonds and earned an interest of $12,000.Thus, the amount $62,000 ($50,000 + $12,000) would be Samantha's _____.

• A) social cost
• B) break-even price
• C) reservation price
• D) opportunity cost

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Definitions:

Continuous Improvement

An unceasing initiative aimed at elevating products, services, or processes by implementing small-scale and revolutionary improvements.

Service Recovery

Training and empowering frontline workers to solve a problem immediately.

Kaizen

A Japanese business philosophy of continuous improvement of working practices, personal efficiency, etc.

Empowering

The act of giving individuals or teams more authority and responsibility, enabling them to make decisions and contribute to organizational goals.