Consider a Color-Blind Firm That Is Currently Maximizing Profits

question 29

Multiple Choice

Consider a color-blind firm that is currently maximizing profits. An affirmative action policy is put in place requiring that all firms in the industry abide by a certain quota. Which of the following will occur?

• A) The firm will have to start hiring some workers that it would prefer not to.
• B) If the quota is already met, the firm will make no changes in its hiring practices.
• C) If the firm currently meets the required quota, it will cut costs by adjusting labor to exactly meet the affirmative action requirements.
• D) If the firm currently meets the quota, it will begin to lose profits due to the affirmative action requirements.
• E) The firm will have to fire some workers.

Understand the concept of dividend capture as an investment strategy.

Grasp the methods to reduce cash management costs and enhance efficiency.

Understand the precautionary, speculative, and transactions motives behind cash management.

Understand the basic structures of the brain involved in emotional responses and their functions.

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Definitions:

Perpetual System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory

Products that a retailer, wholesaler, or distributor has in stock and available for sale.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Perpetual Inventory System

An inventory tracking system where inventory levels are updated in real-time with each sale or purchase transaction, giving a continuous account of inventory on hand.