Armand Runs a Small Company, and Although He Is Generally

question 128

Multiple Choice

Armand runs a small company, and although he is generally happy with his staff, he would like to see them increase their productivity and develop a greater long-term sense of personal identification with the company. The best way for him to achieve that is to

• A) establish a hierarchical environment, tell employees they have to improve, and emphasize the fact that he is boss.
• B) create a structured environment and focus on teaching employees that improved skills will help them keep their jobs.
• C) maintain a friendly environment, help them improve their work skills, and make sure they always remember who is boss.
• D) work on making the office a fun place, take less of a direct approach to job skills, and make sure employees know that he cares.
• E) construct an open environment, dedicate himself to helping his employees achieve their goals, and take the emphasis off hierarchy.

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Definitions:

Index

A statistical measure of change in a representative group of individual data points, often used in finance to track the performance of markets or sectors.

Stock Split

A corporate action where a company divides its existing shares into multiple shares, effectively reducing the price of an individual share for investors while keeping the overall market capitalization the same.

Value-Weighted Index

An stock index in which each component is weighted according to its market value.

Price-Weighted Index

A stock market index in which each company's stock is included in proportion to its share price, meaning higher-priced stocks have more influence on the index's performance.