Table 3-28 Barb and Jim Run a Business That Sets Up and Up

question 529

Multiple Choice

Table 3-28
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.
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-Refer to Table 3-28. Jim has an absolute advantage in

• A)both setting up and testing computers and a comparative advantage in setting up computers.
• B)both setting up and testing computers and a comparative advantage in testing computers.
• C)neither setting up nor testing computers and a comparative advantage in setting up computers.
• D)neither setting up nor testing computers and a comparative advantage in testing computers.

Evaluate the need for financial planning in ensuring proper growth support.

Distinguish between the sustainable and internal growth rates under various financial conditions.

Analyze the implications of financial planning assumptions on a firm’s operational adjustments.

Understand the importance and limitations of financial planning models.

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