An Fixed Wage Employee Who Is Able to Shirk

question 11

Multiple Choice

An fixed wage employee who is able to shirk:

• A)will be fired if caught.
• B)shows in a subtle way that she is also a residual claimant.
• C)proves that the firm is too big for its own good.
• D)operates in a world of zero transaction costs.

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Definitions:

Market Segment

A collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires.

Small Businesses

Companies with limited revenue and number of employees, falling below certain statutory limits.

Downsizing

The reduction of a company’s workforce to lower expenses, often involving layoffs of employees as a measure to sustain or improve the business.