Question

Jack Wills owns a commercial nursery. Jack has more business than he wants, in fact, he is presently turning away exciting new business opportunities because it is expensive to hire new employees, and he knows that if he did hire new employees it would take time for the new employees to be trained and to be socialized into the culture of his firm. Jack's inability to take advantage of the new business opportunities that are coming his way is due largely to the ________ problem.

Answer 1

Answer:

The options are given below:

A. business aptitude

B. entrepreneurial aptitude

C. commercial opportunity

D. business capacity

E. managerial capacity

The correct option is E.

Explanation:

The managerial capacity problem is a term that is used to refer to a firm's ability to grow, which is directly related to its ability to add managerial capacity in order to administer the required growth.

The implication of this is that, when a firm goes about its daily operations, the management team will become better acquainted with the resources used in the firm.

Therefore, in the scenario above, Jack is limited by the problem of not wanting to take on new members to his managerial team. He argues that it is expensive and it will take time for the new members to get acquainted with the running of the business.

Answer 2

Options to Answer

A) business aptitude

B) entrepreneurial aptitude

C) commercial opportunity

D) business capacity

E) managerial capacity

Answer:

E. Managerial capacity

Explanation:

Managerial capacity has to do with the ability or capacity for an individual to manage a business. Managerial capacity problem has to do with those problems that occurs when growth in an organization is limited by the manager's capacity. The managerial capacity is attributed to personnel, expertise, intellectual and so on. Insufficient managerial capacity leads to loss business opportunities like in this case we have here. Because of his inability to take in more worker, he's losing more businesses.