Which of the Following Occurs When an Employer Decides to Outsource

question 32

Multiple Choice

Which of the following occurs when an employer decides to outsource or move production abroad?

• A) Elimination of any kind of internal competition among employees to retain jobs.
• B) Unionized workers from two different local unions of the same national will be forced to end operations.
• C) Increase in job security and union bargaining power on a companywide basis.
• D) Companies may seek tax concessions from governments representing a particular country in deciding where to locate.

Recognize the standard and legal grounds for terminating a franchise agreement.

Understand the rationale behind standardizing franchise operations, including pricing practices.

Analyze the implications of exclusive territory rights in franchise agreements.

Consider the factors influencing the choice of business organization and the methods for securing additional capital without losing control.

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Definitions:

Black Monday

Refers to a specific date, October 19, 1987, when stock markets around the world crashed, recording the largest one-day percentage decline in stock market history.

Daily Returns

The profit or loss of an investment over a single trading day, expressed as a percentage of the investment's value at the start of the trading day.

Normally Distributed

A statistical term that describes a bell-shaped frequency distribution that is symmetric about the mean, used in various financial models to assume the distribution of returns or asset prices.

Risk-Adjusted Returns

Performance measurement that evaluates the return gained from an investment relative to the risk taken, often calculated using measures such as the Sharpe ratio.