Mike Morrell Is a Production Supervisor in Porco Rosso, an Aircraft

question 98

Multiple Choice

Mike Morrell is a production supervisor in Porco Rosso, an aircraft manufacturing firm. After evaluating Mike's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers were assigned to him. However, some managers are skeptical about Mike's ability to handle more workers.
-Which of the following is a drawback of a narrow span of control?

• A) It increases effectiveness.
• B) It is more expensive.
• C) It encourages employee autonomy.
• D) It decreases the number levels in the organizational hierarchy.
• E) It increases participatory decision making.

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Definitions:

Implicit Call Option

A provision in a financial contract that gives the issuer the right, but not the obligation, to take a specified action under certain conditions, often found in bonds.

Include

To contain, encompass, or have something as part of a whole or group.

American Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time period until expiration.

Underlying Asset

An asset or security on which a derivative instrument, such as a futures or options contract, is based.