A Business Owner Based in a Developed Country Refuses to Do

question 4

Multiple Choice

A business owner based in a developed country refuses to do business with a supplier based in a developing country because he believes that the people and business in the developing country are inferior to the people and businesses in his country.This biased belief is best called:

• A)collective narcissism.
• B)implicit group metafavoritism.
• C)ethnocentrism.
• D)racism.

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Definitions:

Contribution Margin Ratio

A financial metric that indicates the portion of sales revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance.

Unit Variable Cost

The cost that varies directly with the production volume, defined per unit of production.

Sensitivity Analysis

An approach to assess how different values of an independent variable can affect a particular dependent variable under a given set of assumptions.