Even Though All of the Following Rationale May Be Legitimate

question 37

Multiple Choice

Even though all of the following rationale may be legitimate from a managerial perspective, arbitrators consider which one of the following to be the only legitimate/ necessary purpose of employee discipline?

• A) To promote efficient production.
• B) To maintain respect for the supervisor's authority.
• C) To correct and improve the employee's behavior.
• D) To set an example of appropriate behavior to other employees.
• E) To transmit the rules of the organization to other employees.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Forecasting Risk

The potential for future revenues or earnings to deviate from projected amounts due to variables that affect demand, supply, and pricing.

NPV Estimates

Calculations used to determine the Net Present Value of an investment, forecasting the difference between the present value of cash inflows and outflows.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase its profits by increasing sales, given its fixed costs.