You have rented your first apartment, signing a lease that commits you to pay $500 each month for 12 months. you have an opportunity to take a trip to europe during the entire month of june and you will spend $2,000 traveling. your apartment will be vacant, but because of your lease, you must pay the rent. the cost of taking the trip to europe is:
a. $2,000, because the $500 for your june rent is a sunk cost
b. $2,500, because this is your total spending during the month of june
c. $1,500, because the june rent is an opportunity cost of traveling that must be deducted from the explicit cost of the trip.
d. $2,500, because the june rent is an opportunity cost of traveling and must be added to the explicit cost of the trip

Is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) cooptation (b) coalition (c) competitive intelligence (d) competitive aggression (e) smoothing

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?