Duane Works for a Heavy Equipment Operator

question 21

Multiple Choice

Duane works for a heavy equipment operator. Recently, the brakes failed on an excavator Duane was assigned to operate. Duane and a construction worker were injured when the excavator drove into a building on the site. This incident was heavily covered in the news and the company now faces fines and a downturn in business due to the smear on its reputation. These expenses are best described as examples of which of the following?

• A)direct costs
• B)indirect costs
• C)insurable expenses
• D)economic imperative for safety

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Definitions:

General Environment

The broad external conditions that affect organizations and their operations, including economic, legal, political, social, and technological factors.

Uncertainty and Volatility

Conditions characterized by unpredictable changes and a lack of stability, often referring to economic or financial markets.

Mechanistic

Describing an organizational structure that is highly formal, rigid, and bureaucratic, focusing on hierarchy, defined roles, and rules.

Organic Form

An organizational structure characterized by flexibility, decentralized decision-making, and a lack of formal procedures and hierarchies, often adapting quickly to environmental changes.