Cultural Change Effort in an Organization Can Be Deemed Successful

question 24

Multiple Choice

Cultural change effort in an organization can be deemed successful if:

• A)employees who do not conform to the new values are removed.
• B)the change in the behavior of employees persists only in the presence of rewards.
• C)newcomers are not required to go through the anticipatory socialization process.
• D)employees automatically respond to a crisis in ways consistent with the corporate culture.

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Definitions:

Total Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profits

Profits exceeding the total cost of capital, including both the cost of debt and the opportunity cost of equity capital.

Explicit Costs

Expenses directly incurred in the course of running a business, such as wages and materials.