You Own a House That You Rent for $1,200 a Month

question 56

Multiple Choice

You own a house that you rent for $1,200 a month. The maintenance expenses on the house average $200 a month. The house cost $89,000 when you purchased it several years ago. A recent appraisal on the house valued it at $210,000. The annual property taxes are $5,000. If you sell the house you will incur $20,000 in expenses. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?

• A) $89,000
• B) $120,000
• C) $185,000
• D) $190,000
• E) $210,000

Understand the concept of systems and their types in management theory.

Recognize the application and benefits of quantitative management approaches in solving business problems.

Identify the characteristics and management of open and closed systems.

Explain the role of network models in project management.

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Definitions:

Incongruent Organizational

Referring to a mismatch or lack of alignment between various aspects of an organization, such as its culture, goals, practices, and employee perceptions or behaviors.

Resistance Change

Opposition to alterations in the status quo or modifications in processes, practices, or policies.

Direct Costs

Expenses that can be directly tied to the production of specific goods or services, such as materials and labor costs.

Psychological Cost

Psychological cost encompasses the mental and emotional strain or stress that individuals might incur as a result of their work environment or job demands.