SCENARIO 14-1 Your Small Company Has Discovered That Other Companies

question 69

Multiple Choice

SCENARIO 14-1 Your small company has discovered that other companies are able to outbid you; your entire operation and product are in need of complete reorganization and redesign.
One proposed change is to take training dollars away from the sales group for a year and give the money to the engineering group to fund technology changes.Organizational resistance to this change would be called

• A)structural inertia.
• B)limited focus of change.
• C)group inertia.
• D)threat to resource allocation.
• E)threat to power.

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Definitions:

Past Service Costs

Costs related to pension plan benefits earned by employees in prior periods, which are recognized in the current period due to plan amendments or changes.

Actuarial Gains and Losses

Gains or losses that arise from the adjustment of assumptions or the application of actuarial models differently over time in evaluating a company's pension liabilities.

Projected Benefit Obligation

Represents an estimate of the total amount to be paid to participants in a defined benefit pension plan, based on employees' service and salary history.

Prior Service Cost

The cost associated with retroactive benefits granted in a pension plan amendment, recognized over the service lives of affected employees.