Scenario 13-4 Suppose That Abdul Opens a Coffee Shop. He Receives a Receives

question 195

Multiple Choice

Scenario 13-4
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%.
-Refer to Scenario 13-4. Abdul's explicit cost of capital is

• A) $8,000.
• B) $4,000.
• C) $2,000.
• D) $1,000.

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Definitions:

Job Rotation

A variation of job enlargement in which workers are exposed to a variety of specialized jobs over time.

Herzberg's Two-Factor Theory

A theory proposing that job satisfaction and dissatisfaction arise from two distinct sets of factors—motivators (e.g., achievements) and hygiene factors (e.g., salary).

Job Enrichment

The process of designing jobs to incorporate higher levels of motivating factors, including opportunities for achievement, recognition, responsibility, and personal growth.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, organized in a five-tier model of human needs, from basic physiological needs to self-actualization.