This Question Has Three Parts;be Sure to Answer Each One

question 17

Essay

This question has three parts;be sure to answer each one.First,explain soldiering.Second,describe the four principles of science that Frederick Taylor believed managers could use to eliminate soldiering.Third,imagine that you manage a small landscaping firm where you believe that the workers are soldiering because they are resentful of having to work in high levels of heat and humidity.Describe the specific actions you would take to overcome soldiering among this group of workers.

Learn the factors that cause changes in rent and land valuation.

Grasp the interplay between market forces in determining wages, interest, and rent.

Understand the determinants and implications of land value and supply.

Compare different theories of profit, focusing on risk-bearing and innovation.

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Definitions:

Abnormal Return

Return on a stock beyond what would be predicted by market movements alone. Cumulative abnormal return (CAR) is the total abnormal return for the period surrounding an announcement or the release of information.

Mean-Variance Optimizers

Tools used in finance to allocate assets in a portfolio in a way that maximizes return for a given level of risk based on the expected returns and variances of those assets.

Fully Informed

A state or condition where all relevant information is known to all parties involved.

Security-market Line

A graphical representation of the relationship between expected return and beta (systematic risk) of an investment.