Answer:
Free cash flow = $2.25 million.
Explanation:
We know,
Free cash flow = Operating income ×( 1 - tax rate) + depreciation - net working capital.
Given,
free cash flow = ?
Operating income = $2.75 million
tax rate = 40%.
depreciation = $1.20 million.
net working capital = $0.6 million.
Putting the values into the formula, we can get
Free cash flow = [Operating income ×( 1 - tax rate) + depreciation - net working capital] million.
Free cash flow = [$2.75 ×( 1 - 40%) + $1.20 - $0.6] million.
Free cash flow = ($2.75 × 0.6 + $1.20 - $0.6) million.
Free cash flow = ($1.65 + $1.20 - $0.6) million.
Free cash flow = ($2.85 - $0.6) million.
Free cash flow = $2.25 million.
Explanation:
The path-goal theory is based on adjusting the leadership style to the needs of employees and the work environment, in order to achieve goals.
In the scenario above, there is a work environment composed of qualified and experienced employees for the function, so the most appropriate leadership style for this scenario according to the path-goal theory would be participative and achievement-oriented leadership.
Participative leadership is a leadership style that ensures greater involvement of employees in decision-making, is effective in a work environment that has qualified and engaged employees. The achievement-oriented leadership style refers to the challenging goals proposed by the leader to employees and the confidence he has in the employees' ability to meet their expectations.
b) Two challenges in the team dynamics that make it difficult to support the view that teams are synergistic may be the lack of communication and a very centralized leadership.
The teams are composed of individuals with different personalities but who join their efforts to achieve organizational goals and objectives.
Therefore, it is necessary to have a leadership style that is geared towards the whole of the team, that seeks to engage and respect the individualities of each member of the team but that motivates them to seek common goals. It is also necessary that communication is valued, that all members feel they are a necessary part of the team, so that the information can be passed on properly and also to avoid conflicts that may occur.
If Country B has an absolute advantage over Country A in producing bicycles, it must also have a comparative advantage over Country A in producing bicycles - False
<h3><u>
Explanation:</u></h3>
When any organisation has the ability to produce a product identical to its competitor company in such a way it utilizes only lesser amount of the given resources producing more product then it is said to have absolute advantage. Comparative advantage refers to the ability of a firm in producing a particular goods or services at a lesser marginal cost when compared with the opportunity cost.
Absolute advantages helps a firm to reduce its production cost than its competitors. Comparative advantage helps a firm in reducing the opportunity cost. It is not necessary to have a company to have both absolute and comparative advantage at the same time. It can either have absolute or comparative advantage.
The alternative combination of final goods and services that could be produced in a given time period with all available resources and technology. in short the production possibility frontier shows the maximum output possibilities for two given goods. It makes the assumption that all inputs are utilized efficiently.
