You Are Considering Adding a Microbrewery onto One of Your

question 31

Multiple Choice

You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inventory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.

• A) $54,400
• B) $11,000
• C) $7680
• D) $6400

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Definitions:

Idea Generation

The creative process of generating, developing, and communicating new concepts or solutions.

Development Time

The duration it takes from the initial idea conception of a product or service until its launch in the market.

Financial Resources

The available resources in the form of cash, liquid securities, and credit lines that a business can use for expenditure.

Kano Model

A theory for product development and customer satisfaction, which categorizes customer preferences into must-be, performance, and delighter attributes.