Jenny Spends 32 Hours a Week, 50 Weeks a Year

question 53

Multiple Choice

Jenny spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that she owns at a resort community. She also owns a music store in another city that is operated by a full-time employee. Jenny spends 140 hours per year working at the music store. She elects not to group them together as a single activity under the "appropriate economic unit" standard.

• A) Neither store is a passive activity.
• B) Both stores are passive activities.
• C) Only the bicycle rental store is a passive activity.
• D) Only the music store is a passive activity.
• E) None of the above.

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Definitions:

Scientific Management

A theory and practice of management that analyzes and synthesizes workflows, aiming to improve economic efficiency and labor productivity.

Frederick W. Taylor

A mechanical engineer from America who aimed to enhance productivity in the industrial sector and is recognized as the progenitor of scientific management.

Open Systems

A concept in organizational and system theories that describes entities which interact with their environments by exchanging resources, information, and energy.

Human Relations Movement

An approach to management focusing on the importance of social relations and employee well-being in the workplace.