Question
Maame Donkor has her own firm and is offered a job in his friends, John Mahamas, firm for an annual salary of 60,000. Currently Maame
Maame Donkor has her own firm and is offered a job in his friends, John Mahamas, firm for an annual salary of 60,000. Currently Maame Donkors firm has annual revenues of 550,000 and costs of 500,000. Assuming Maame Donkor is indifferent between working for himself and working in another firm what should Maame Donkor do? i. Stay in her own firm or take the job in John Mahamas firm? Support your answer with calculation. ii. State the difference between accounting profit and economic profit. iii. State the four elements (or principles) of finance.
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