Consider the following information on a firm: The firm has 3 employees and 1 manager ...

  

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Consider the following information on a firm: The firm has 3 employees and 1 manager • The manager owns the firm and is more experienced than employees • Every year, the firm has the same costs and the same revenue • For every employee, the firm pays a salary (USD 70.000) plus a social security contribution (USD 30.000) • The yearly firm revenue is: USD 450.000 • The yearly employee costs are: USD 300.000 • The yearly management costs are: USD 0 The quarterly ingredient costs are: USD 20.000 • The yearly loan repayments are: USD 20.000 • The yearly other costs are: USD 0 Which statement is wrong? Hint: make sure you read all of the information carefully Select one: O a. Each year the balance of the bank account of the firm increases by USD 50.000 O b. The total revenue of the firm is larger than the total costs of the firm O c. Since the firm is good business, it should continue to operate d. None of the above (that is: all other statements are correct) Consider the following information on a firm: The firm has 3 employees and 1 manager • The manager owns the firm and is more experienced than employees • Every year, the firm has the same costs and the same revenue • For every employee, the firm pays a salary (USD 70.000) plus a social security contribution (USD 30.000) • The yearly firm revenue is: USD 450.000 • The yearly employee costs are: USD 300.000 • The yearly management costs are: USD 0 The quarterly ingredient costs are: USD 20.000 • The yearly loan repayments are: USD 20.000 • The yearly other costs are: USD 0 Which statement is wrong? Hint: make sure you read all of the information carefully Select one: O a. Each year the balance of the bank account of the firm increases by USD 50.000 O b. The total revenue of the firm is larger than the total costs of the firm O c. Since the firm is good business, it should continue to operate d. None of the above (that is: all other statements are correct)

Answer rating: 100% (QA)

Which Statement is wang a Each ye... View the full answer