Fred's Donuts Is Installing New Equipment in Its Bakery

question 20

Multiple Choice

Fred's Donuts is installing new equipment in its bakery. Many employees are fearful they will not be able to operate it. Which one of the following courses of actions is best for Fred to use to overcome this employee resistance?

• A) threaten the employees who resist the change
• B) present distorted facts to the employees
• C) terminate employees who resist the change
• D) educate employees and communicate with them

Recognize the accounting treatment of unrealized holding gains and losses for various investment categories.

Identify the conditions required for the use of the held-to-maturity, available-for-sale, and trading securities classifications.

Distinguish between realized and unrealized gains and losses and their impact on financial statements.

Know the significant influence criteria for the equity method and how it affects financial reporting.

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Definitions:

Profit-Sharing Plan

A company program where employees receive a share of the company's profits in addition to their regular compensation.

Company's Intranet

A private network used by a company to securely share information, operational systems, or computing services only within the organization.

Legal Departments

Divisions within organizations responsible for overseeing legal matters, including compliance with laws and representation in legal proceedings.

Incentive Pay

A compensation strategy that rewards employees for achieving specific performance targets or for exceptional work, intended to motivate higher productivity.