Tom Willis, Owner-Manager of J&P Manufacturing Company, Has Tried Just

question 36

Multiple Choice

Tom Willis, owner-manager of J&P Manufacturing Company, has tried just about everything to motivate his employees.He has added new fringe benefits, including legal services; he has improved safety conditions; and he has increased employee pay by 7 percent across the board.None of these actions seem to have worked.Now Tom wonders what he should do next.Which of the following would you suggest?

• A) Increase pay to 17 percent across the board.
• B) Add a day-care centre to the employee benefits package.
• C) Prepare and distribute a company policy manual.
• D) Improve job security.
• E) Enrich jobs as necessary.

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Definitions:

Net Income

The remaining earnings of a corporation after deducting all costs, taxes, and expenses from its gross revenue.

Common Stock

A type of equity security that represents ownership in a corporation, entitling shareholders to vote on corporate matters and possibly receive dividends.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by dividing total net credit sales by the average accounts receivable.

Accounts Receivable

Funds that customers are required to pay to a company for products or services that have been provided but not yet compensated for.