When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accounts Receivable Department doing the same, leading to a cash flow crunch, what can we say happened in decision-theoretic
terms?
A) optimization
B) profit minimization
C) suboptimization
D) cash flow problems
C
You might also like to view...
Mountain Gear has been using the same machines to make its name brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $100,000. The old machines presently have a book value of $60,000 and a market value of $6,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $50,000 and have operating expenses of $9,000 a year. The new machines are expected to have a five-year useful life and no salvage value. The operating expenses associated with the old machines are $15,000 a year. The new machines are expected to increase quality, justifying a price increase, and thereby
increasing sales revenue by $5,000 a year. Select the true statement. A. The company will be $20,000 better off over the 5-year period if it keeps the old equipment. B. The company will be $11,000 better off over the 5-year period if it replaces the old equipment. C. The company will be $12,000 better off over the 5-year period if it replaces the old equipment. D. The company will be $6,000 better off over the 5-year period if it replaces the old equipment.
Answer the following statements true (T) or false (F)
1.Constructive discharge is a situation where the organization takes an adverse employment action against an employee because the employee brought discrimination charges against the organization or supported someone who brought discrimination charges against the company. 2.Adverse employment action exists when an employee is put under such extreme pressure by management that continued employment becomes intolerable and, as a result, the employee quits, or resigns from the organization. 3.Affirmative action is a series of policies, programs, and initiatives that have been instituted to prefer hiring of individuals from protected groups in certain circumstances, in an attempt to mitigate past discrimination. 4.In human resource management, diversity deals with different types of people in an organization. 5.Quid pro quo harassment is harassment that occurs when some type of benefit or punishment is made contingent upon the employee submitting to sexual advances.
A factor demanding the ethical and social responsibility of business is:
a. the "invisible hand" of competition. b. the sheer size and power of individual corporations. c. the fact that self-regulation has been effective in achieving social goals. d. great amounts of wealth and economic power are controlled by a small number of shareholders who own and exercise tight control over a large number of corporations.
The March 2007 rule of the SEC requires new disclosures on:
a. Officer perks. b. Options. c. Grants. d. Both a and b