I would say false. Stress isn't always 100% there, but I'll not sugarcoat it: There is a LOT of stress when it comes to running a business, especially a small one. I would know, because my mother runs one, and she is almost constantly stressed out. Let it be deadlines, or taxes, or her employee didn't come in that morning, there is much stress. But again- it's NOT always there. It's extremely rare, but sometimes you are actually stress free.
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In this scenario, the buying decision of Matt
is likely to be influenced by an opinion leader. Sandy is
considered as an opinion leader because he is a car enthusiast and owns several
cars which mean he has a wide knowledge about cars. Matt will be confident that
Sandy will be able to give a reasonable opinion about the cars.
Answer:
Simple rate of return = 17.7%
Explanation:
Simple rate of return = incremental operating income ÷ initial investment
Depreciation = $468,000 ÷ 6years = $78,000
incremental operating income = $161,000-$78,000 =$83,000
Simple rate of return = $83,000÷$468,000=17.7%
Answer:
The correct answer is A) inconsistent reasoning; saving $20 is saving $20.
Explanation:
Tony is making an uninformed decision or more strictly, his reasoning is inconsistent. A flat discount of $20 is applicable to all products. Whether he buys something that is worth $50 or $500, his savings would still be the same.
All other options are wrong. If e.g. he this was a flat 20% discount, his savings would have been much different. e.g. 20% of $50 is $10 while it equals to a $100 for a $500 product.
At this point, he would have to make rational decision on what he really needs to buy.