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You Are Considering Renting a Kiosk in the Local Mall

question 96

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You are considering renting a kiosk in the local mall for a period of three months.Any sale you make will be a one-time sale.There is only a 79 percent chance you will collect payment on a credit sale.The product you want to sell has a variable cost of $3.88 and a sales price of $4.99.The monthly interest rate is 1.5 percent.Should you offer people 30 days to pay? Why or why not?


Definitions:

Formalized Rules

Established regulations and procedures designed to guide behavior and operations within an organization or institution.

Division Of Labor

A system in which different individuals or groups are responsible for different tasks or aspects of production, promoting efficiency and expertise.

Management Change

The process, tools, and techniques to manage the people side of change to achieve a required business outcome.

Intrapreneurship

The act of behaving like an entrepreneur within a larger organization, including taking initiative and promoting innovative projects.

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