Scenario C

question 35

Multiple Choice

Scenario C. Smash Marketing is consulting firm located in the Midwest. Mr. William "Bill" Smash started the firm as a young man in the early 1950s. The firm has grown but with growth, they have never forgotten the vision of Mr. Smash—to be creative in all they do while delighting the client. Each year the Smash Award for Advertising Creativity is given to the employee who most exemplifies Mr. Smash's vision. New employees are told of the organization's greatest accomplishments and are taken on a tour of the "Wall of Memories" where pictures of the company taken over the years are hung. One is even included to remind everyone of the disastrous fire that the company not only survived, but also built upon to strengthen the sense of teamwork clearly evident throughout the firm. In fact, there is a long tradition of employee participation in decision making and all consider themselves to be part of the "Smash Family."
-Based on the information in the above scenario,which of the following outcomes would you most expect if business dropped off dramatically for Smash Marketing?

• A)Mr.Smash would lay off most of his workforce.
• B)The members of the entire company would agree that they should each cut their hours by 15% so that no one is laid off.
• C)Mr.Smash would sell the company and move to Hawaii.
• D)The members of the company would go on strike.
• E)Mr.Smash would charge more for the consulting services so that he can make ends meet.

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Definitions:

National Sales Tax

A tax levied on retail sales of goods and services at the national level, typically a percentage of the sales price.

Low-Income

Describes individuals or families that earn significantly less than the median income of their locality, often leading to limited access to goods and services.

Positive Economics

The branch of economic study that focuses on objective analysis and descriptions of how economies work, without making value judgments.

Global Warming

The long-term rise in Earth's average temperature, primarily due to human activities like burning fossil fuels, which increases greenhouse gas levels in the atmosphere.