Outsourced projects are susceptible to conflicts since people are unaccustomed to working together. Which of the following is a primary control mechanism for dealing with and resolving problems?
A. Regulation
B. Mediation
C. Escalation
D. Arbitration
E. Collaboration
Answer: C
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A feature of an effective incentive pay plan is that it should
A. have performance measures linked to the organization's goals. B. encourage group performance and sideline individual achievements. C. be the same for all employees in the organization. D. not be provided as a direct percentage of employees' performance. E. have performance measures based on employees' requirements.
If the predetermined overhead allocation rate is 75% of direct labor cost, and the Assembly Department's direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department: Factory Overhead15,000 Work in Process Inventory, Assembly Dept. 15,000
Answer the following statement true (T) or false (F)
The average prime offer rate is the rate offered to the least qualified borrowers as established by a survey of potential borrowers.
Answer the following statement true (T) or false (F)
As firms become more leveraged, the risk of insolvency rises because
A) the use of debt results in interest payments that cannot be avoided during poor economic conditions. B) bondholders trade lower risk for greater expected returns. C) interest payments on most bonds vary with the level of market rates. D) bondholders are less vigilant than shareholders. E) debt-financed firms are less able to take advantage of a strong economy.