Which one of the following statements is TRUE?
A. An example of an agency relationship is when a private individual hires a lawyer to prepare her defense in a lawsuit.
B. An example of an agency relationship is when a supervisor hires a forklift operator.
C. The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.
D. An agency cost is the wage required to pay someone who is hired to perform a service.
E. An example of an agency cost is when the board of directors pays a dividend to shareholders.
Answer: A
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The demographic situation, consisting of married couples with children younger than 18 years old and which constitutes 21 percent of all U.S. households, is referred to as a(n)
A. socialized household. B. typical household. C. traditional family. D. ideal family unit. E. reference group.
A retail firm wants to focus its efforts on a narrow target market: deep-sea fishing enthusiasts who wish to purchase costly fishing accessories. The most appropriate nonstore-based strategy mix (with the lowest waste coverage) is _____
a. airport retailing b. direct selling c. vending machines d. direct marketing
In a process operation, the direct labor of a production department includes:
A. Only labor that relates to goods finished during the period. B. All labor used exclusively by that department, even if the labor is not applied to the product itself. C. All labor used exclusively by that department, but only if the labor is applied to the product itself. D. All labor for that department, including labor for services that help more than one production department, such as clerical, repair, and computer technicians. E. Only labor that helps more than one production department, such as clerical, repair, and computer technicians.
How useful is the concept of `dominance’ effects?
What will be an ideal response?