Uncontrollable External Factors Can Create Challenges in Measuring the Results

question 19

Multiple Choice

Uncontrollable external factors can create challenges in measuring the results for which managers should be held responsible. Which of the following is the best example of an uncontrollable external factor for a manager who oversees all of the operations for a business?

• A) Production volumes were above normal levels so that overtime was paid to direct labour employees
• B) Poor quality direct materials were purchased so more materials than usual were required in the manufacturing process
• C) Raw materials prices increased due to a global shortage
• D) Utilities costs were higher than normal even though weather and usage were typical for that time of year

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Definitions:

Negligence Per Se

The doctrine that provides that a conclusive presumption of breach of duty arises when a defendant has violated a statute and thereby caused a harm the statute was designed to prevent to a person the statute was designed to protect.

Foreign Nation

A country that is located outside one's own country and is governed by a separate legal and political system.

Punitive Damages

Punitive Damages are monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish the defendant for particularly egregious conduct and deter future similar acts.

Plaintiff

The person or party who initiates a lawsuit against another party in a court of law.