If a Company Has a Stable External Environment and Resources

question 7

Multiple Choice

If a company has a stable external environment and resources are easily available, then the human resource manager for this company would most likely want to

• A)encourage managers to empower lower-level employees.
• B)allow managers to make their own guidelines.
• C)set up flexible norm guides.
• D)set up detailed standard operating procedures (SOPs).

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Definitions:

GAAP Restructuring Gains

Refers to gains reported in financial statements when a company reorganizes its operations under Generally Accepted Accounting Principles, potentially leading to improved future profitability.

Economic Gains

Increases in economic value or wealth, which can result from investment returns, business activities, or other actions that enhance financial health.

Subprime Loans

Subprime loans are offered to individuals with poor credit scores who are considered high-risk borrowers, typically featuring higher interest rates than prime loans.

Securitized

Refers to the process of pooling various types of debt—including mortgages, car loans, or credit card debt—and selling them as consolidated financial instruments to investors.