Solved

Crescendo Inc

question 98

Multiple Choice

Crescendo Inc. distributes musical and band instruments nationwide. Reductions in high school musical programs and the economic recession have led to a sharp downturn in sales. Because of this, a salary freeze has been in effect for three years and increases in supplementary health care premiums have cut into workers' take-home pay. Nevertheless, the firm has avoided layoffs, the workforce has experienced minimal turnover, and the firm has lost only a handful of employees, mostly for health reasons. The CEO considers this continuity of the workforce a healthy sign, but the human resources director is less sanguine. She feels that the workplace culture is becoming inbred and too focused on maintaining job security rather than looking for ways to be truly engaged in the company's goals. Which of the following, if true, would most support the CEO's position that the firm is basically healthy?

Recognize the consequences of unauthorized actions by agents.

Comprehend the principles surrounding the termination of agency relationships.

Understand the role of express, implied, and apparent authority in agency relationships.

Learn about special rules related to electronic agents and their actions.

Definitions:

General Cash Offering

A public sale of securities in which the proceeds are used to fund general business activities and not earmarked for a specific project.

Rights Offering

An issue of rights to existing shareholders allowing them to buy additional shares directly from the company at a discount before a public offering.

Seasoned Issue

A new offering of stock to the public from a company that has previously issued securities to the public.

Indirect Costs

Costs that are not directly tied to a specific project or product, such as administration, personnel and security costs.