Imagine That You Are on the Olympics Planning Committee

question 114

Multiple Choice

Imagine that you are on the Olympics Planning Committee.Nine out of ten of the committee members hold the same opinions.However,one member,Laura,consistently deviates from the group's opinion.How is your group most likely to act toward Laura to bring her in line with the group's opinion?

• A) The group will immediately punish Laura to force her to change her opinion.
• B) The group will first increase communication with Laura. When that doesn't work, the group will ignore and punish Laura.
• C) The group will ignore Laura and refuse to communicate with her. If this tactic fails, the group will punish Laura.
• D) The group will hold Laura in high regard for voicing her opinion.
• E) The group will nominate Laura to be the chair of the committee.

Understand the distinction between normal profit and its significance in business.

Grasp the effects of uninsurable risks on business firms.

Recognize the entrepreneurial role in economic profit generation and the functions they typically do not undertake.

Understand the concept and importance of profit in entrepreneurship.

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Definitions:

Idle Capacity

The portion of a company's resources or assets that are underused or not being used at all, often leading to inefficiency and increased costs.

Overhead Allocated

The process of assigning a portion of indirect costs to specific cost objects, such as products or departments.

Pre-tax Income

The income earned by a business before taxes are deducted.