Mr Bigletter Is Employed at an Annual Salary of $25,000

question 19

Multiple Choice

Mr. Bigletter is employed at an annual salary of $25,000. He plans to start his own business and estimates that he can gross $30,000 annually. If he chooses to open the new business, his foregone salary is a (an) :

• A) Irrelevant cost
• B) Sunk cost
• C) Opportunity cost
• D) Incremental cost

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Definitions:

Competency

A combination of skills, abilities, and knowledge that enables an individual to perform a specific task or role to a defined standard.

Problem-Solving Competency

The ability to understand complex issues, identify their causes, and effectively develop, implement, and evaluate solutions.

Katz's Conceptual Skill

The ability to understand complex situations and conceive appropriate solutions, as defined by Katz within the context of managerial roles.

Knowledge In Mumford's Model

In Mumford's Model of leadership, knowledge refers to how leaders conceptualize and understand their environment, making informed decisions based on a broad and deep understanding of their context.