Sebastian Had Some Ideas and Developed a New Process for the Production

question 82

Multiple Choice

Sebastian had some ideas and developed a new process for the production line, but when he implemented the changes, the results were not what he expected, frustrating him. Instead of improving production speed, the new process slowed down the production and caused some deficiency in the quality of the product. Sebastian works in an innovative culture; therefore, his manager told him

• A)to keep working on the project and fix the problem.
• B)his hours on the project would be docked because the process didn't work.
• C)there was a chance he would be demoted and to not fix things that are working just fine.
• D)to keep track of the hours he spent on it; he would be paid, but his project would be killed.
• E)to make notes about what went wrong, stop the project, and share the notes with management.

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Definitions:

Exit Price

The amount that would be received from selling an asset or transferred liability in an orderly transaction between market participants.

Entry Price

The price at which a security or asset was bought, affecting the calculation of gains and losses for accounting or tax purposes.

Principal Market

The market with the greatest volume and level of activity for the asset.

Active Market

A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.