The Timberline Firm Expects a Total Need of €12,500 Over

question 26

Multiple Choice

The Timberline firm expects a total need of €12,500 over the next 3 months.They have a beginning cash balance of €1,500,and cash is replenished when it hits zero.The fixed cost of selling securities to replenish cash balances is €3.50.The interest rate on marketable securities is 8% per annum.There is a constant rate of cash disbursement and no cash receipts during the month. What is the total opportunity cost for a month based on the firm's current practice?

• A)€5.00
• B)€18.98
• C)€27.92
• D)€60.00
• E)None of the above.

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Definitions:

Desire for Control

The motivation to influence or regulate one's environment or the outcomes of various aspects of one's life.

High Standard

The level of quality or excellence that is expected or required from a task or behavior.

Directive Management Style

A leadership approach characterized by clear, explicit instructions and close supervision of tasks and performance.

Unstructured Interviews

A qualitative research method involving open-ended, flexible conversations where the interviewer can adjust questions based on the respondent's answers.