Ronald Transformers Wants to Open a New Plant

question 31

Multiple Choice

Ronald Transformers wants to open a new plant.After thorough research,the company has identified five suitable sites.There is conflict over which site to select,so management decides to put it to vote and then take the decision by majority rule.Despite its democratic appeal,the decision fails and the company has to stop the construction of the plant at the chosen site. Which of the following arguments best explains the reason behind this failure?

• A) The majority rule discouraged group members from implementing integrative bargaining strategies.
• B) The use of the majority rule created the problem of tunnel vision for participants.
• C) Use of the majority rule failed to take into consideration the strength of individual preferences.
• D) Use of the majority rule discouraged effective implementation of circular logrolling.

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Definitions:

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Lump Sum Payment

A single payment made at a particular time, as opposed to several smaller payments or installments.

Compounded Annually

A method of calculating interest where the interest earned over a period is added to the principal, and the total becomes the base for the calculation of the next period's interest.

Lump Sum Payment

A payment made in a single lump sum amount, often used in the context of paying off debts or settling transactions.