Kendell Adams Owns a Software Development Company

question 37

Multiple Choice

Kendell Adams owns a software development company. When he first launched his firm, he was carefully to hire employees who had the experience he was looking for, were good matches for the positions he had available, and could be properly supervised. As Kendell's firm has grown, and his need for employees has increased, he is finding that it is increasing difficult to find employees who have the qualifications he is looking for, are good matches for the positions he has available, and fit within the supervisory framework he has developed. Kendell is dealing with an issue referred to as:

• A) adverse hazard
• B) adverse selection
• C) complicated hazard
• D) ethical hazard
• E) moral selection

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Definitions:

Production Costs

Expenses associated with the manufacturing or production of goods, including materials, labor, and overhead costs.

Multiple Market Segments

The practice of targeting several distinct groups of potential customers, each with specific needs and characteristics, within a broader market.

Single Product

A business strategy focused on the development, production, and sale of one particular product, rather than diversifying into multiple lines.

Market Segments

The relatively homogeneous groups of prospective buyers who have common needs and will respond similarly to a marketing action.