The Case of the Poorly Written Manual John Howard was shaking his head as he left the meeting with his boss, Joe French. Joe was right; the new technical manual was simply not up to the company's standards. Yes, he had told Joe that there were three new people in the test group, but that was no excuse. The three apparently were simply not capable writers; they might be capable product engineers, but their writing was terrible. John called the training department and asked for Susan Harris. Could Susan schedule his three new employees in her next technical writing course? 1. What are John's assumptions in making this decision? 2. Is this an appropriate approach to solving his problem?

Answers

Answer 1

John's assumptions in making this decision are that the three new product engineers are not capable writers and that their writing is terrible. John also believes that the only way the technical manual can be brought up to company standards is by offering a course in technical writing.

This is not an appropriate strategy for resolving the issue, as decisions should never be made based solely on assumptions, such as the fact that the product engineers in question are new hires and therefore unable to write. This is further explained below.

What is a decision?

Generally, a decision or conclusion was arrived at after careful deliberation.

In conclusion, When John was making this choice, he made a number of assumptions, one of which was that the three new product engineers are not competent writers and that their writing is horrible. John is also of the opinion that the only way the firm's technical handbook can be brought up to the standards of the corporation is by providing students with the opportunity to take a course in technical writing.

Because choices should never be made entirely based on assumptions, such as the fact that the product engineers in question are new employees and hence unable to write, this is not a suitable technique for fixing the problem. Decisions should never be made solely based on assumptions.

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Related Questions

There are three levels of analysis in OB, and, as we move from the individual level to the group level, to the organization systems level, we add systematically to our understanding of behavior in organizations. True False

Answers

True

The organizational system is the structure of how an organization is set up. This structure defines how each department of the company is organized, the hierarchy, to whom to report, and how communication flows throughout the organization (2) meso (group level) and ( 3) Macro (organizational level). The behavioral sciences that make up the OB domain provide elements at each of these levels.

At the group level of analysis, organizational behavior includes studying group gestures, competition, and intra-group and inter-group connectivity. It extends further to the study of leadership, power, norms, interpersonal communication, networks, and roles.

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The escrow agent for a first-time purchaser is showing the survey and easements from the local electric utility company along the front edge of the property. The title agent explains that this easement is a covenant that

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The escrow agent for a first-time purchaser is showing the survey and easements from the local electric utility company along the front edge of the property. The title agent explains that this easement is a covenant that the answer runs with the property.

Do house sellers have to provide a survey?

You don't have to give the buyer a survey if you're selling the property. Only if the property is being sold at auction could you want to consider getting a survey done. It can be a good idea to distribute the report to prospective buyers before to the auction, but it's not always necessary.

Do estate agents have to tell you about previous surveys?

They are required by consumer protection laws to provide relevant information about the property that can affect the buyer's choice.

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Even if it is making economic losses, a perfectly competitive firm should keep operating in the short run so long as the price is:__________

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Even if it is making economic losses, a perfectly competitive firm should keep operating in short run so long as price is higher than average variable cost. A company operating in  perfect competition has no control over product's price. A company that stops producing, or closes down temporarily, will incur losses proportional to the fixed costs.

Because the firm's losses will be smaller in that scenario than the fixed costs, it will be prudent to continue functioning in near term when firm's total income surpasses firm's entire fixed expenses. Losses result when the market's price drops below average overall cost.

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BALANCE SHEET Evaluation

Prepare a Balance Sheet for Rosebud Motel, using today’s date. Assets include Cash $17,000, Equipment $29,900, Office Supplies $2,095, Accounts Receivable $8,215 and Building $141,000. Liabilities include two separate suppliers: Elmdale Cleaning Ltd. $4,600, and Staple Supply Co. $1,150, Mortgage Payable $74,000 and Bank Loan $16,230. Remember to calculate the owner’s equity for the owner, Stevie Budd.

Answers

The preparation of a Balance Sheet for Rosebud Motel as of July 26, 2022, is as follows:

Rosebud Motel

Balance Sheet

As of July 26, 2022

Assets

Current Assets:

Cash                                             $17,000

Office Supplies                               2,095

Accounts Receivable                      8,215

Total current assets                    $27,310

Long-term Assets:

Equipment          $29,900

Building                141,000        $170,900

Total assets                               $198,210

Liabilities

Current Liabilities:

Elmdale Cleaning Ltd.                $4,600

Staple Supply Co.                          1,150

Total current liabilites               $5,750    

Long-term Liabilities:

Mortgage Payable $74,000

Bank Loan                 16,230    90,230

Total liabilities                        $95,980

Owner's Equity                     $102,230 ($198,210 - $95,980

Total liabilities and equity    $198,210

What is the balance sheet?

The balance sheet is a financial statement that shows the financial position of an entity.

The balance sheet shows that the assets are equal to liabilities and equity.

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A local station that broadcasts national network programming is called a(an) ________ station.

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Station broadcasting the national network programme is called an affiliate station.

Affiliate station is the broadcasting station or the local broad castee owned by the network or a particular company which some line or television lines use for broadcasting.

It is basically common in informal way of speech containing a particular network programming which could be programme clearances or radio waves.

It can be in the form of group wide deal or communications dealing with the national broadcast including the transactions of grouped station assorted.

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A ______ occurs when a firm has accrued significant market power and is changing the industry structure in its favor.

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Near monopoly occurs when a firm has accrued significant market power and is changing the industry structure in its favor.

What does a near monopoly mean?Near-monopolies are companies that have moved into a space and have taken over a significant portion of the market share. Such companies are often very large. Also, they tend to diversify, making other products to help boost both market share and profit.

Strategic emergent monopoly is an emergent strategy is one that arises from unplanned actions and initiatives from within an organization

A natural monopoly exists in a particular market if a single firm can serve that market at lower cost than any combination of two or more firms

The term "accrued liability" refers to an expense incurred but not yet paid for by a business. These are costs for goods and services already delivered to a company for which it must pay in the future. A company can accrue liabilities for any number of obligations and are recorded on the company's balance sheet.

Therefore Near Monopoly occurs when a firm has accrued significant market power and is changing the industry structure in its favor..

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Correct Question - . A ______ occurs when a firm has accrued significant market power and is changing the industry structure in its favor

a. Near monopoly

b. Strategic emergent monopoly

c. Natural monopoly

d. Accrued liable monopoly

Investments by wealthy individuals and endowments is a major source of money for each of the following EXCEPT:

Answers

Investments by wealthy individuals and endowments is a major source of money for each of the following EXCEPT: Mutual Funds .

What is Mutual Funds ?

A mutual fund is nothing but the system of Money management which is introduced by professionally investing money which is pick up form the public.

Mutual Fund are basically of two types such as:

Close-ended Fund: This fund has a specific period of maturity which generally ranging from three to fifteen years.Open-ended Fund: An open-ended fund is one that available for subscription through all year.

A mutual fund business is to investment of the funds afterward, accumulate according to the investor's demand who created the pool.

Therefore, we can conclude that the correct option is D,

Your question is incomplete, but most probably your full question was:

Investments by wealthy individuals and endowments is a major source of money for each of the following EXCEPT ________.

A) private equity funds

B) hedge funds

C) venture capital funds

D) mutual funds

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Andrew Industries purchased $160,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $21,000, and the materials used to complete jobs during the month were $136,500 of direct materials and $12,500 of indirect materials. What is the ending Raw Materials Inventory balance for March

Answers

The Ending Raw Materials Inventory for Andrew Industries will be:

32,000

HOW TO CALCULATE ENDING RAW MATERIALS?

We will use the Inventory identifier formula to solve for ending inventory

Beginning Inventory + Purchase = Ending Inventory + Used.

⇒21,000 + 160,000 = Ending  Inventory + Used.

Used materials

Direct Used Materials = 136,500

Indirect Used Materials = 12,500

Total Used Materials = 149,000

Now we know,

21,000 + 160,000 = Ending  Inventory + 149,000

⇒ 181,000 - 149,000 =  32,000

Therefore, Ending Inventory = $32,000.

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An outside business associate generously offers you a gift. What is the policy in regards to accepting an item from an outside business associate

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Option B. You may accept the gift if the Outside Business Associate assures you that there is no intent to induce a referral or other business.'

Who is a business associate?

This is the  term that is used to refer to a person that is known to perform activities on behalf of another entity.

The entity that they do these activities for are usually covered and they may also hand disclosure of information for the person.

Complete question

An outside business associate generously offers you a gift. What is the policy in regards to accepting an item from an outside business associate?

A An item cannot be accepted from an outside business associate. If offered, given, requested, or accepted in exchange for or to induce referrals or other business that may be reimbursed by a Federal health care program.

B You may accept the gift if the Outside Business Associate assures you that there is no intent to induce a referral or other business.

C You may always accept a gift from an Outside Business Associate regardless of the situation.

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When it comes to resolving labor-management disagreements, __________ are a tactic used by unions and __________ are a tactic used by management.

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When it comes to resolving labor-management disagreements, Arbitration is a tactic used by unions and mediation is a tactic used by management.

The unions send the arbitrator to the management who settles the dispute or mediated to it.

Mediation is the process by which the parties meet with a mutually selected impartial and neutral person to assist them in resolving their disagreements.

Even if the parties to the dispute do not resolve the dispute, mediation often "raises" the actual issue, improves communication between the parties, and thereby fosters improved working relationships.

Mediation is a flexible, confidential process for resolving disputes between two or more individuals, businesses, or other entities. It includes the appointment of a mediator, an independent and impartial third party, to help the parties discuss, negotiate and reach an amicable resolution of their issues.

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Question 3: what is the total period cost for the month under variable costing?

Answers

beneath the variable costing technique, all promoting and administrative (constant and variable) fees and glued production overhead is taken into consideration as part of the total period fee. hence, the whole length cost for the month beneath variable costing is $344,000.

underneath variable costing, fixed production overhead is handled as a period price and is charged in complete towards the modern length's profits. 7-2 promoting and administrative charges are dealt with as duration costs underneath both variable costing and absorption costing.

General period expenses encompass any prices that aren't at once related to product production. prison expenses, income commissions, and office components are considered length expenses and have to be recorded as expenses on the balance sheet.

length prices are fees that can't be capitalized on a company's balance sheet. In different phrases, they're expensed in the period incurred and appear at the profits statement. duration fees are also known as length fees.

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Alex is starting a career in ux and wants to be able to specialize in a particular ux design role and focus on one project from beginning to end. which job is a good fit for alex?

Answers

A small start-up is a good fit for Alex.

Startups are frequently internet- or technology-based firms with broad market appeal. On the other hand, you don't need a sizable market to expand into in order to run a small firm. All you need is a market, and you must be able to effectively contact and service every member of that market.

Despite their tiny size, startups can have a big impact on the expansion of the economy. Startups are the epicenters of the invention; they generate jobs, which increases employment and boosts the economy; and they have a noticeable influence on the cities in which they settle.

After a few years of operation, startups are on the road to success. While small firms develop quickly, they can only do so if they start to see success over time. A startup needs time to develop and gain a large customer base that can use its product.

Types of startups are:  

Buyable startupsScalable startupsOffshoot startupsSocial startups

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Generally speaking, a differentiator chooses to divide its market into Group of answer choices None of these choices. as few segments as possible. niches and segments in which customers will pay premium prices. two or three major segments. one generic market.

Answers

Generally speaking, a differentiator chooses to divide its market into niches and segments in which customers will pay premium prices.

What is Differentiation Strategy?

Your differentiation strategy is the way in which you make your firm stand out from otherwise similar competitors in the marketplace. Usually, it involves highlighting a meaningful difference between you and your competitors. And that difference must be valued by your potential clients. A strong differentiator will provide a competitive advantage for your firm.

This is why many firms choose to compete with a focused strategy. In a focused strategy you narrow your appeal to a niche audience.

For example, an accounting firm that works exclusively with chain restaurants has a very compelling differentiator to that niche market segment. However, a different audience segment, such as automobile dealers, would find no value in working with the restaurant specialists.

Therefore, we can conclude that the correct option is Generally speaking, a differentiator chooses to divide its market into niches and segments in which customers will pay premium prices.

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After months of thinking about the new laptop she heard about from a friend, anna finally decides it’s time to buy it. In what stage of the customer journey is anna?

Answers

The stage of the customer journey of Anna is the Purchase phase.

Awareness: the customer becomes familiar with the brand via channels, consisting of advertising and word-of-mouth. Consideration: realizing that they have a need that must be met, the customer actively considers whether or not to buy the product or service on offer. Purchase: the customer makes the purchase.

Customer's journey. is defined as the active research process someone goes through leading up to a purchase. It is called a journey because each one of your prospective customers will be at different points in their journey towards a purchase.

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When investors give computer instructions to sell automatically to avoid potential losses if their stock price dips to a certain point, it is called

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When investors give computer instructions to sell automatically to avoid potential losses if their stock price dips to a certain point, it is called program trading.

What is program trading?

Program trading is what create space or time for multiple trades to occur simultaneously.

It is an automated process that gives instructions to computers to sell when price of a stock goes down to prevent loss.

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The total dollar return is the sum of dividends and blank______.
a) percentage returns
b) government payouts
c) overall market fluctuations

Answers

The total dollar return is the sum of dividends and capital gains and losses.

What is a dividend?

A dividend is the returns paid investors, who have stake in a firm or an organization. It is normally paid to shareholders, who own shares in a company at the end of financial period.

In other words,

Dividends refer to share of profits from a portion of company's earnings which is paid to a class of its shareholders. It can be issued in different forms, such as cash payment, stocks or any other form. An organization’s dividend is decided by its board of directors and the shareholders’ approval is required.

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NB

Please see complete question below.

The total dollar return is the sum of dividends and __________.

a) capital gains or losses

b) overall market fluctuations

c) percentage returns

d) government payouts

Most investors and all banks expect to be provided financial statements that meet the rules of?

Answers

The financial statements that most investors and all banks expect to get are those that meet the rules of the Generally Accepted Accounting Principles or GAAP

What is Generally Accepted Accounting Principles?

This refers to the guidelines to financial reporting that are accepted in the United States.

Investors would often want companies that they invest in to give financial statements according to GAAP while all banks will expect it in order to properly analyze it based on the U.S. market.

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What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor?.

Answers

Developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor is called Vertical Integration.

What is Vertical Integration?Vertical integration is a tactic that enables a business to streamline operations by directly controlling different stages of the production process instead of depending on outside suppliers or contractors.Instead of outsourcing these operations, a business might achieve vertical integration by acquiring or forming its own manufacturers, distributors, and retail outlets. 

A good illustration of vertical integration is Netflix, Inc. Before expanding into online streaming of films and films licensed from big studios, the company began as a DVD rental company. Then, Netflix executives recognized that by creating some of their own original content, like the popular series Grace & Frankie and Stranger Things, they might increase their profit margins. The Get Down, a 2016 movie that reportedly cost the corporation $120 million, is one of the disasters it also made.

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in the real world (that is, if we relax the assumptions of the modigliani and miller's proposition I), optimal capital structure is

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In the real world, the optimal capital structure is 100% debt.

A company's optimal capital structure is the optimal combination of debt and equity financing that maximizes the company's market value while minimizing its cost of capital. In theory, debt financing has the lowest cost of capital as it is tax deductible. However, excess debt increases shareholders' financial risk and the return on equity they require. Firms, therefore, need to find the sweet spot where the marginal utility of debt equals the marginal cost.

According to economists Franco Modigliani and Merton Miller, in an efficient market free of taxes, bankruptcy costs, agency costs, and information asymmetries, a company's value is unaffected by its capital structure.

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A rain drop hitting a lake makes a circular ripple. If the radius, in inches, grows as a function of time in minutes according to

Answers

The function [tex]A(t)=676\pi (t+1)[/tex].

What is a function?A function from a set X to a set Y allocates one element of Y to each element of X. The set X is referred to as the function's domain, while the set Y is referred to as the function's codomain. Functions were originally the idealization of how a varying quantity depends on another quantity.

To find the function [tex]A(t)[/tex] :

The area of a circle is expressed as;

[tex]A=\pi r^{2}[/tex]

Where A = Area

r = radius

From the case above.

The radius of the ripple is a function of time:

[tex]r=r(t)=26\sqrt{t+1}[/tex]

So,

[tex]A(t)=\pi [r(t)]^{2}[/tex]

Substituting [tex]r(t)[/tex],

[tex]A(t)=\pi (26\sqrt{t+1} )^{2} \\A(t)=\pi (676(t+1))\\A(t)=\pi (26\sqrt{t+1} )^{2} \\A(t)= 676\pi (t+1)[/tex]

Therefore, the function [tex]A(t)=676\pi (t+1)[/tex].

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The question you are looking for is here:

A raindrop hitting a lake makes a circular ripple. Suppose the radius, in inches, grows as a function of time in minutes according to r(t)=26t+1−−−−√, and answer the following questions. Find a function, A(t), for the area of the ripple as a function of time.

Which of the following are ways in which most neo-Freudian theorists differ from Freud, according to the text

Answers

Ways that Neo-Freudian theorists differ from Freud include:

B) Sex is emphasized less by neo-Freudians.C) Conscious processes are emphasized more by neo-Freudians.D) They emphasize interpersonal relationships as the source of psychological health

How do Neo-Freudian theorists differ from Freud?

Even though they support a lot of Freud's theories, Neo-Freudian theorists often disagree with some of the former's assertions.

They for instance, do not place as much emphasis on sex and try to focus on interpersonal relationships being a source of psychological health.

Options for this question include:

A) They rely on a more scientific approach than did Freud.B) Sex is emphasized less by neo-Freudians.C) Conscious processes are emphasized more by neo-Freudians.D) They emphasize interpersonal relationships as the source of psychological health.

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How can you best protect yourself from companies you are doing the first signing for and do not have a contract with?

Answers

You can protect yourself from companies you are doing the first signing for and do not have a contract with by Protecting yourself from business liability, forming a corporation or LLC, properly entering into business agreements, and maintaining business compliance.

The signer is the official word for the signer. This is not only used to refer to the person signing the legal documents but is also common in those legal documents as part of the drafted terms and conditions. For this reason, it can be considered legal.

In law, this is known as "Procuration". This means acting through an agent or agent (basically, one acts on behalf of the other with the privileges of the other). A signature as an agent or representative is limited to a specific purpose. B. Sign the rental agreement.

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These transactions took place for Bramson Co. 2021 May 1 Received a $5,000, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney. Dec. 31 Accrued interest revenue on the R. Stoney note. 2022 May 1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2021.) port Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.[Credit account titles are autom when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Answers

The transactions at Bramson Co. are recorded in the General journal format by debiting an account and crediting the other  

Journal entries are made as follows:

What is Receivable?

Receivable is a compensation for the goods or services sold, the receivable is recorded as the cash to be received and when this cash is actually received the receivables entry is reversed.

May 1 2021

Receivables DR $5000

Sales CR $5000

To record Receivables from R. Stoney

Dec 31 2021

Allowance for bad debts DR $300

Receivables $300

To record the allowance for bad debts expected

May 1 2022

Receivable DR $300

Accrued Interest Income CR $300

(Assuming 6% interest rate)

To record the interest income

May 1 2022

Cash DR $5300

Receivables CR $5300

To record the cash receipt from R. Stoney

May 1 2022

Receivables DR $300

Allowance for receivables CR $300

To record the reversal of allowance for receivables.

The transaction will be recorded as this and the final transaction shows how to reverse the allowance for receivables previously recorded.

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What U.S. state sued car manufacturers in 2006 when they didn't comply with cutting tailpipe emissions

Answers

California U.S. state car manufacturers in 2006 when they didn't comply with cutting tailpipe emissions.

What is California emissions?

The US Environmental Protection Agency (EPA) reinstated California's Clean Air Act waiver and revoked a rule issued by the Trump Administration, enabling the state to set its own greenhouse gas emissions for cars and create a zero-emissions vehicle program.

The state of California filed a lawsuit against the biggest automakers in the nation for the environmental harm caused by tailpipe emissions. The latest effort by the state to stop greenhouse gases, which trap heat in the atmosphere and contribute to global warming, was this. Both acclaim and criticism were directed at Attorney General Bill Lockyer, who brought the lawsuit on the state's behalf. In 2006, Governor Arnold concisely outlined the goal when he signed California's historic climate strategy into law. To persuade states that California's plan to drastically reduce tailpipe emissions in order to combat global warming may further damage the already-struggling U.S. industry, automakers and their supporters have intensified their lobbying efforts. Environmental Protection Agency's Washington headquarters, the two senior. The secretary of transportation, stated that California's strict regulation on tailpipe pollution should be eliminated. The California Air Resources Board , in need of a remedy, focuses on the problem's root cause: automobile emissions. Motivated by General Motors' recent announcement.

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Which of the following types of diversification strategies is characterized by less than 70 percent of revenue coming from the dominant business and limited links between businesses

Answers

B) Related linked types of diversification strategies are characterized by less than 70 percent of revenue coming from the dominant business and limited links between businesses.

This level of diversification is visible in a corporation that operates its sports specifically on a single or dominant business. The company is in a single commercial enterprise if its sales are more than 95 percent of the total sales.

There are three types of diversification techniques:

Concentric diversification.Horizontal diversification. Conglomerate diversification.

Corporations using diversification as a dominant method begin operations in one key industry and then amplify the firm by means of buying organizations or developing new corporations. The extra corporations, at the same time as not at once concerned inside the key industry, usually provide items and services that decorate the authentic industry.

The question is incomplete. Please read below to find the missing content.

Which of the following types of diversification strategies is characterized by less than 70 percent of revenue coming from the dominant business and limited links between businesses

A)Corporation link

B)Related linked

C) Limited partnership link

D) Unlimited partnership link

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According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the ________. reward cost satisfaction outcome

Answers

According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the outcomes. reward cost satisfaction outcome

Social exchange theory also called the interdependency theory. Human psychology has a direct relation with interdependency.

Interdependency theory views relationship within people and the individual self which lay emphasis on one's behaviour and emotions.

This makes theory both psychological with human element presenting the concept of interdependency.

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How do human weaknesses complicate decision-making, according to hamilton?

Answers

The outcome of a careful assessment of various possibilities in terms of the likelihood and worth of outcomes connected with these options, human decision making is frequently examined.  The normative theory based on these premises that is arguably the most popular is the subjective expected utility theory.

In order to better understand the cognitive processes that underpin human judgement and decision making, a significant amount of research focuses on systematic violations of these rationality rules.  Heuristics are cognitive shortcuts that people employ while making decisions, according to research on them.

Following a quick description of the most crucial heuristics, information on more descriptive decision-making techniques is provided Prospect theory, image theory, rule following, and reason-based choice are a few examples.

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An architrcture firm would stand to lose a lot of money in the event of death of its project manager. Which type of policy should the firm purchase on its project manager

Answers

Key person insurance is the policy should the firm purchases from its project manager.

What is key person insurance?

A company will insure its most valuable employee or employees with key person insurance. A disability coverage rider can be added to a policy to assist if a crucial employee becomes disabled. An important employee's death or disability might put a small business at risk; key person insurance can help.

Why would a business owner choose the use of key person insurance?

If the sudden loss of a certain person would have a significant negative impact on the business operations, key person insurance provides a financial safety net. The death benefit simply buys the company some time to locate a replacement or to pursue other business-saving (or business-closing) actions

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What is defined as a commitment to finding and using the best theory and data available at the time to make decisions?

Answers

Evidence-based management is defined as a commitment to finding and using the best theory and data available at the time to make decisions.

Evidence-based management is an approach which involves commitment  and consciously setting aside the accepted conventions and hierarchy of opinion, and instead, using critical thinking and the best available evidence to make decisions.

An Evidence-based management is important as it reduces errors in judgement, reduces the potential for irrational thinking, bias, or reduces exhaustion which negatively impact management decisions. It is based on evidence, systematic decision-making, and re-evaluating and adapting.

Hence, Evidence-based management uses the best theory and data available at the time to make decisions.

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Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. if the actual real gdp is $700 billion, which policy would bring the economy to potential output?

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By assuming that marginal propensity to consume is 0.8 and potential output is $800 billion. if the actual real GDP is $700 billion, Increase government spending by $20 billion policy would bring the economy to potential output.

Marginal Propensity to Consume (MPC) is calculated using the formula MPC = C/Y, which divides consumption change by income change.

You must first determine the change in income and the ensuing change in spending in order to perform this calculation (consumption).

The computation would go as follows if a person's income rose by $5,000 and their expenses rose by $4,500:

MPC = 4,500/5,000. MPC equals.9, or 90%

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