Why might a manager accept a high-variance, low-value project instead of a low-variance, high-value project?
What will be an ideal response?
Shareholders only gain in good states of the world, and if the variance of the firm is higher, they gain more in those good states. Holders of debt get paid their full amount in good states of the world, and they get the value of the firm in the bad states of the world. By accepting a high variance project, managers may be able to shift some value from bondholders to shareholders. In such a situation the manager is said to have engaged in asset substitution.
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What is the analysis and redesign of workflow within and between enterprises?
A. Enterprise resource planning B. Supply chain management C. Business process reengineering D. Customer relationship management
If an advertiser wanted to promote its brand, what advantage would television offer in achieving this goal?
What will be an ideal response?
As service innovations are made to the product or environment the delivery of the excellent service must remain ______.
a. fair b. equitable c. consistent d. differentiated and consistent with the other changes
________ refers to the presence of differing cultures, languages, ethnicities, races, affinity orientations, genders, religious sects, abilities, social classes, ages, and national origins of the individuals in a firm.
Fill in the blank(s) with the appropriate word(s).