Scenario: Bob Baldwin As an Owner and Manager of Tricky Toys, Bob Baldwin

question 18

Multiple Choice

Scenario: Bob Baldwin
As an owner and manager of Tricky Toys, Bob Baldwin has been fascinated by all the changes occurring and transforming the workplace.Bob is concerned about the important OB trends that he can understand and take advantage of in developing and positioning his company in the marketplace.
-If Bob wants to consider deep-level diversity he would

• A)review the demographic characteristics of his workforce.
• B)consider the likelihood of long-term employment with the organization for each of his employees.
• C)observe the differences in the people who represent his workforce.
• D)look at different attitudes and expectations of his employees.
• E)both 'C' and 'D'.

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Definitions:

Cost of Equity

The return that investors expect for providing capital to a company, often estimated using models like the Dividend Discount Model (DDM) or the Capital Asset Pricing Model (CAPM).

Unlevered Cost of Capital

Refers to the cost of capital for a firm that has no debt, representing only the cost of equity.

Financial Leverage

The use of borrowed money (debt) to amplify the potential return of an investment or project.

Debt/Equity Ratio

The indicator that compares the role of debt and equity in financing company assets.