Use the Following Scenario to Answer the Following Questions

question 127

Multiple Choice

Use the following scenario to answer the following questions:
Babak owns a sports practice facility called Boston Batting Cages in Boston,Massachusetts.During the first year of operation,Boston Batting Cages incurred many costs.In that year,Babak spent $5,000 on labor,$2,000 on maintenance,and $1,000 on electricity.Babak took out a loan to open his business,in which he would have earned $1,500,and his previous job,which he could get back at any time,paid him $50,000.
-If Boston Batting Cages received $80,000 in revenues,what were the accounting profits?

• A) $20,500
• B) $72,000
• C) $51,500
• D) $80,000
• E) $50,000

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Definitions:

Sustaining Change

Involves maintaining and embedding the changes within an organization's culture and operations over time to ensure long-term success and adaptation.

Need for Change

The requirement to adapt or modify strategies, processes, or operations within an organization to improve effectiveness, address challenges, or exploit new opportunities.

Diagnosing

Involves identifying the nature of a problem or situation through systematic analysis and investigation.

Double-Loop Learning

A learning model that goes beyond simple problem solving to question underlying assumptions and modify objectives and strategies in light of new insights.