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MBA 540 Mid-term Exam

Comprehensive mid-term exam covering key business management concepts.

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    1 MBA 540 Mid - term Exam 1. (10 pts.) Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help her make a decision? By gaining knowledge of the opportunity costs, Ms. Freeman need to utilize her resources, constraints, implicit costs, and explicit costs. On the off chance that she has an auto now that is separating, she will be setting a lot of cash into it, it might be more helpful to utilize that cash for another auto installment. Regardless of the possibility that the sum month to month spent on repairs on the old auto and the auto installment were equivalent, they would bring about a slant of - 1. Verifiably, the security and genuine feelings of serenity that a more up to date auto, that may have a guarantee and more present day wellbeing components, offers worth to the open door cost. In the event that Ms. Freeman has an auto now that is not giving her inconvenience, then the unequivocal expense of another auto installment could be utilized toward an option utilize or put something aside for some other time. For Ms. Freeman to have the capacity to live inside of her financial plan line, her choice ought to mirror the most possible blend of transportation and cash/living inside of her methods (Brickley, Smith, & Zimmerman, 2009). 2. ( 10 pts.) Referring to the table below, hiring a driver costs $10. Each machine costs $100. Which method should he use and why? Method 1 = (20*10 ) x ( 10*100 ) = $1,200 Method 2= (50*10 ) x ( 2*100 ) = $700 Method 3= (100*10 ) = $1,000

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