Scenario 4.1 LMNO Corporation Is a U.S.-Based Company with Four Distinct Businesses

question 2

Multiple Choice

Scenario 4.1
LMNO Corporation is a U.S.-based company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs. LMNO is in the process of acquiring another company, its major music store rival BeBop Records. Because its rap stars are so famous, LMNO charges crazed fans a higher price for its music compact discs and DVD videos. The fans don't mind, as they often have the opportunity to meet the rap stars in person at various LMNO music stores throughout the year. LMNO has a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
-Refer to Scenario 4.1. LMNO's policies of no layoffs and promotion from within are likely to have the MOST positive effect on

• A) production efficiency.
• B) leadership within the company.
• C) excessive absenteeism, due to the threat of being fired.
• D) employees' psychological contracts with the company.
• E) employee attrition.

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Definitions:

Gradient

The rate of change of a quantity (e.g., temperature, pressure, or elevation) with respect to distance in a given direction.

Headwaters

The source of a river or stream, generally found in the high elevation areas from which the river originates.

Mouth

The location where a stream, river, or canyon ends, such as where a river enters the sea.

Cross-sectional Area

The area of an object or space as seen from a cut through the object, typically perpendicular to its longest dimension.