Mba 540" from Anti Essays

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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? If Stella buys a new car she will face an opportunity cost when he has to give up her savings because she could keep her savings in the bank for future investment as the deposit for a house rather than spend it all on a new car. That money could also be invested in shares or in a small business that will generate income or increase their value over time, and otherwise a car as time goes loses its original value. Besides vehicle maintenance could be a constant loss in her investment. Stella has to maximize her utilities in order to make a good decision and probably give up a new car and get a used vehicle and use the rest of the money for other investments or keep it as a back up in her bank account. 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 + 10*100=1200 Method 2: 50*10 + 2*100=700 Method 3: 100*10 + 0*100=1000 Method 4: 10*10 + 12*100=1300 Method #2 is the less expensive but not the most efficient, in this case I will pick method #4 because I will be more efficiency having more quantity of drivers for my 50 sports to be delivered. [pic] 3. (10 pts.) Enron will be an example of a dysfunctional company for many years to come. It was clearly a company riddled with fraud and excess and its conduct drove it into bankruptcy. The text argues that individual behavior was not at the core of Enron’s problems. What were the problems with this corporation from an organizational architecture point of view? The problem of this company was to leave low-level employees make decisions with little knowledge they needed more trained staff. Besides

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