SpandoCorp Is a Diversified Firm That Makes Industrial, Military and Consumer

question 78

Multiple Choice

SpandoCorp is a diversified firm that makes industrial, military and consumer products from Spandex. SpandoCorp manages each of the businesses that it operates in as a separate division and treats each as a True profit-and-loss center. In this organization, Grace McKenna is responsible for deciding which set of businesses SpandoCorp will operate in and for encouraging behavior that is consistent with this strategy, Wells Tucker provides information to McKenna about the internal and external environments that she uses in her decision making, and Kelly Rae is one of the individuals who is responsible for evaluating the firm's decision making to ensure that it is consistent with the interests of equity holders.
-If SpandoCorp's board of directors wanted to ensure that changes in the CEO's compensation would be closely linked to changes in the firm's performance, it should

• A) use a compensation package that includes only a salary for the CEO.
• B) use a compensation package that includes a salary and a cash bonus for the CEO.
• C) use a compensation package the includes a salary, a cash bonus and stock options that represent only a relatively small percentage of the CEO's total compensation package.
• D) use a compensation package that includes a salary and stock options that represent a relatively substantial percentage of the CEO's total compensation package.

Explain the significance of digestive enzymes and hormones in the gastrointestinal process.

Understand the functional arrangement and flow of materials through the colon.

Describe the mechanisms of defecation and reflexes associated with the gastrointestinal tract.

Identify the implications of liver damage on digestion.

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Definitions:

Product Differentiation

The technique of making a product or service stand out from others in the industry to appeal more to a chosen target market.

Barriers To Entry

Factors that prevent new firms from entering and competing in imperfectly competitive industries.

Market Share

The proportion of the total sales or output produced in a market by a single company, often used as an indicator of competitiveness.

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.