For Over 40 Years, Golden Creamery Has Been Mixing Up

question 47

Multiple Choice

For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for customers. The company originated in Dallas and now boasts stores in 35 states. The business has primarily expanded by selling franchises to qualified candidates. Golden Creamery executives realize that the firm's success depends upon the success of each franchise. In the past, each individual franchise owner determined the best method for screening applicants. However, as the firm grows, Golden Creamery executives want to standardize the hiring process by requiring all franchisees to use the same preemployment tests. Which of the following best supports the argument that Golden Creamery should use a certified psychologist to develop preemployment tests?

• A)Golden Creamery needs to comply with all federal and state laws.
• B)Golden Creamery competitors use psychologists for test development.
• C)Golden Creamery strives to create a conscientious organizational culture.
• D)Golden Creamery needs to ensure that tests are legally and ethically appropriate.

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Definitions:

Re-Engineering

Refers to the radical redesign of business processes for significant improvement in performance, efficiency, and quality.

Activity-Based Management

A management approach focusing on identifying and evaluating activities that a business performs, to improve decision making and operational efficiency.

Objectivity

The practice of basing decisions, judgments, or analysis on facts and evidence, free from personal bias or emotions.

Target Cost

The desired cost of a product derived from subtracting the desired profit margin from the competitive market price.