Application of Resistance to Change

question 34

Multiple Choice

Application of Resistance to Change
Acme Feed Company is a small farmers' store located in eastern North Carolina. Because the surrounding farms have been taken over by corporate farmers, Acme's owners know that they must make some changes. The owners have decided to hire an "expert" to assist them in making the necessary changes. Acme currently employs fifteen people. Two individuals serve as managers and have been with Acme for over twenty years. Five employees have been hired in the last several years, and an additional eight employees are part- time workers who are attending the local agricultural college.
-Since the full- time employees have some expertise to make a contribution to the changes, management should consider__________ next, even though it is time- consuming and has potential for a poor solution.

• A)negotiation
• B)cooptation
• C)coercion
• D)participation

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain exceeding the opportunity costs of resources.

Implicit Costs

Non-direct payments or out-of-pocket costs, representing the opportunity costs of using resources owned by the firm for its own use.

Explicit Costs

Payments made directly to individuals or entities for business operations, including salaries, leasing costs, and supplies.

Implicit Costs

The opportunity costs of using resources that a firm already owns, rather than the expenses directly paid out.