Dave Is an Owner and Manager of Three Apartment Buildings

question 162

Multiple Choice

Dave is an owner and manager of three apartment buildings in northern Minnesota. During an exceptionally hot summer the temperatures soared and the toll on the window air conditioners was too much. Seventeen of them have broken down already, and more are probably going to have to be replaced. He has a total of seventy-five apartment units. Dave is now in the process of deciding how to repair the air conditioning. Should he buy new window units for all the buildings, or should he install central air conditioning? What type of decision is Dave facing?

• A)situational involvement and extended decision making
• B)situational involvement and limited decision making
• C)enduring involvement and extended decision making
• D)enduring involvement and limited decision making
• E)external involvement and limited decision making

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Definitions:

Accounts Receivable Period

The mean period required for a company to collect payments due from its clients.

Discounts

A reduction from the usual cost of something, often applied to prompt payment or for certain customers like students or seniors.

Long-Term Debt

Debt that is due for repayment after more than one year's time, often used for significant investments.

Source Of Cash

A source of cash refers to any activity or transaction that brings money into a business or individual's possession, increasing cash flow.