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Assume that you are a manager of a chemical company. An accident has occurred in which the chemicals leaked to the ground water nearby, the community is unaware. Evaluate the costs comprised in cleaning up the water instantly (confessing) versus hiding the fact and possibly paying more in the future. Describe the impact on profitability in both conditions. From the first e-Activity, evaluate the factors included in conducting a break-even analysis. Find out the conditions which might exist for a manager of this good or service might decide to move forward with operations even with the initial costs of operations is more than the potential revenue.

Management Theories, Management Studies

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