After Every Quarterly Board Meeting, Bernice's Bracelets, Inc

question 157

Multiple Choice

After every quarterly board meeting, Bernice's Bracelets, Inc. announces big changes. They usually do not follow through on these changes. Recently, one of the managers at Bernice's Bracelets tried to get her employees to change their assembly process for beaded bracelets. The employees were reluctant to do so. Based only on the information in this question, what is the most likely reason for the employees' lack of enthusiasm for the change?

• A) Disagreements about the benefits
• B) Self-interests
• C) Lack of trust
• D) Different assessments and goals
• E) None of these

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Definitions:

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) measures a company's current share price relative to its per-share earnings, used by investors to evaluate the valuation and potential for future earnings growth of a stock.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, serving as an indicator of the company’s profitability.

Shares Outstanding

The total number of shares of stock that have been issued by a company and are currently held by investors, including public shareholders and company insiders.

Profit Margin

An indicator of a company's profitability, measured by dividing net income by revenue, and expressing the result as a percentage.