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A manager obtains required capital at 12% interest while prevailing interest rate is 10%. How would you describe such a manager? Effective/Efficient/Both/Inefficient?
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A manager obtains required capital at 12% interest while prevailing in...
Answer:

Efficiency of a Manager in Obtaining Capital

Introduction:
In this scenario, a manager obtains required capital at 12% interest while the prevailing interest rate is 10%. The question asks for a description of such a manager, whether the manager is effective, efficient, both, or inefficient.

Efficiency:
Efficiency is the ability to do something in the most economical way possible, making the best use of resources available. Therefore, efficiency in obtaining capital means securing the necessary funds at the lowest possible cost.

Manager's Efficiency in Obtaining Capital:
Based on the scenario and the definition of efficiency, it can be concluded that the manager is inefficient. This is because the manager obtained the required capital at a higher interest rate than the prevailing rate, resulting in an unnecessary additional cost.

Conclusion:
In conclusion, the manager is inefficient in obtaining capital as the manager did not secure the funds at the lowest possible cost.
Community Answer
A manager obtains required capital at 12% interest while prevailing in...
Inefficient
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Direction: Read the following text and answer the questions given below:Tasty Ice Creams Ltd. is a very famous company in Indore and has many branches in different parts of the city. They also have major expansion plans as they expect that their customers will increase in number in the next two years. Tasty Ice Creams Ltd. produces a variety of ice-creams which are extremely popular in the city and one brand of icecream ‘Magic’ sells the most. Thus, the company undertakes the maximum production for ‘Magic’ and it contributes to their revenue to the extent of 25% and has the largest market share. The company has undertaken different strategies to ensure that they remain the market leader in Indore. One of the methods it follows is Differential Piece Wage System to differentiate between efficient and inefficient workers. It is so because the company believes that in this way its inefficient workers would be encouraged to perform better and improve their productivity. This will motivate them to be at par with the efficient workers. Thus, Tasty Ice Creams Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ₹ 50 per unit and those below will get ₹ 40 per unit.Such a worker producing 15 units is termed as ………………..

Direction: Read the following text and answer the questions given below:Tasty Ice Creams Ltd. is a very famous company in Indore and has many branches in different parts of the city. They also have major expansion plans as they expect that their customers will increase in number in the next two years. Tasty Ice Creams Ltd. produces a variety of ice-creams which are extremely popular in the city and one brand of icecream ‘Magic’ sells the most. Thus, the company undertakes the maximum production for ‘Magic’ and it contributes to their revenue to the extent of 25% and has the largest market share. The company has undertaken different strategies to ensure that they remain the market leader in Indore. One of the methods it follows is Differential Piece Wage System to differentiate between efficient and inefficient workers. It is so because the company believes that in this way its inefficient workers would be encouraged to perform better and improve their productivity. This will motivate them to be at par with the efficient workers. Thus, Tasty Ice Creams Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ₹ 50 per unit and those below will get ₹ 40 per unit.What will be the earnings of a worker producing 15 units?

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A manager obtains required capital at 12% interest while prevailing interest rate is 10%. How would you describe such a manager? Effective/Efficient/Both/Inefficient?
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A manager obtains required capital at 12% interest while prevailing interest rate is 10%. How would you describe such a manager? Effective/Efficient/Both/Inefficient? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A manager obtains required capital at 12% interest while prevailing interest rate is 10%. How would you describe such a manager? Effective/Efficient/Both/Inefficient? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A manager obtains required capital at 12% interest while prevailing interest rate is 10%. How would you describe such a manager? Effective/Efficient/Both/Inefficient?.
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