Sally,a Supervisor at RandomThoughts Corp

question 94

Multiple Choice

Sally,a supervisor at RandomThoughts Corp.,believes that finding a new job is rarely easy and can take months,so her employees are very cautious about quitting.Ursula,Sally's manager,however,argues that some employees may be unable to resolve problems without leaving the company altogether.Which of the following situations is most likely to strengthen Ursula's view?

• A) If Sally's subordinates are dissatisfied because they find their pay too low
• B) If Sally's subordinates are dissatisfied because they find her unfair
• C) If Sally fires an employee because of violating public policy
• D) If Sally fires an employee because of violating an antidiscrimination laws
• E) If Sally's employees are poached and employed by a rival company that offers them higher salaries

Understand and calculate overhead expenses in pricing.

Calculate profit or loss based on the retail price.

Understand the effect of operating expenses on pricing and profitability.

Analyze and calculate adjusted selling prices based on discounts, mark-ups, and markdowns.

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Definitions:

Arbitrage Pricing Theory

A financial model that determines the theoretical return of an asset by considering multiple macro-economic factors or theoretical market indices.

Systematic Risk Factors

External risks that affect an entire market or asset class, and cannot be mitigated through diversification.

CAPM

Capital Asset Pricing Model; a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

Arbitrage Pricing Theory

A financial model that estimates the price of securities by considering the relationship between their expected returns and macroeconomic factors.