Betsy's Clothiers, a dress factory in Boston since 1927, had 100 employees working in her dress-making factory. Many of the employees are women and children who work long hours. She rotates shifts throughout the day so employees do not do the same tasks throughout the entire day. She discovered that this makes it possible for the children to work longer and harder. She also allows employees to take a 15-minute lunch break and two breaks during the day to use the restroom. One of her employees, a ten-year-old named Sam, has complained that it is too cold in the factory to work in the winter and too hot to work in the summer and that 15 minutes is an insufficient amount of time to eat lunch. He has reported Betsy's Clothiers to the mayor and asked that he intervene on behalf of the

employees at the factory. Which of the following statements was true about government regulation of businesses prior to 1930 and how this regulatory scheme will affect Sam?

A. Government agencies published accounts of consumers' grievances and held sellers accountable for their actions so it is likely Sam's story will be heard and acted on.
B. Government will probably not interfere because it only became involved in obvious abuse of the free-market system.
C. It was not widely believed that competition would correct abuses in the business marketplace so intervention will be immediate and swift.
D. Government frequently became involved in the day-to-day activities of businesses so this company should have expected government regulators to intervene in this situation.


Answer: B

Business

You might also like to view...

Consumers often think comparative ads:

A) are less believable B) are more believable C) contain accurate information D) develop more favorable attitudes toward the brand

Business

Return on investment (ROI) is calculated by:

A) multiplying the margin by the turnover. B) dividing the margin by the turnover. C) dividing the turnover by the margin. D) adding the margin and the turnover.

Business

Roger Corporation produces goods in the United States, to be sold by a separate division located in Italy. More specifically, the Italian division imports units of product X34 from the U.S. and sells them for $950 each. (Imports of similar goods sell for $850.) The Italian division is subject to a 40% tax rate whereas the U.S. tax rate is only 30%. The manufacturing cost of product X34 in the United States is $720. Furthermore, there is a 10% import duty computed on the transfer price that will be paid by the Italian division and is deductible when computing Italian income. Tax laws of the two countries allow transfer prices to be set at U.S. manufacturing cost or the selling prices of comparable imports in Italy.Required: Analyze the profitability of the U.S. division, the Italian

division, and Roger as a whole to determine if the overall corporation would be better off if transfers took place at (1) U.S. manufacturing cost or (2) the selling price of comparable imports. What will be an ideal response?

Business

Dunweiler Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000

If selling, general, and administrative expenses (SGA) are historically 18% of sales, what are the expected SGA expenses (in dollars)? A) $18,000,000 B) $27,000,000 C) $30,000,000 D) $41,000,000

Business