Acme Widget Has Been Sued

question 88

Multiple Choice

Acme Widget has been sued. It had been expected to lose suit and to be liable for massive payments that would have imperiled the future of the company. If Acme unexpectedly wins the suit,

• A)the price of its bonds will rise.
• B)the price of its bonds will fall because Acme will now be able to pay higher interest.
• C)the price of its bonds will fall because investors will sell Acme's bonds and buy its stock.
• D)the price of its bonds will be unchanged; once issued prices on bonds do not change.

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Definitions:

Scientific Management

A theory developed by Frederick W. Taylor, focusing on improving economic efficiency and labor productivity through systematic procedures and empirical studies.

Work Methods

Work methods are the techniques, strategies, and processes employed to carry out tasks or activities efficiently and effectively.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency and labor productivity.

Productivity

Productivity refers to the efficiency of production of goods or services expressed by some measure, typically output per unit of input.