SCENARIO 10-4 Your Supervisor Has to Restructure the Jobs Within Your Division,and

question 19

Multiple Choice

SCENARIO 10-4
Your supervisor has to restructure the jobs within your division,and some of your colleagues are not pleased.One colleague,Don,is concerned that he will not be able to perform the new tasks.Since he is paid by the amount he produces,his pay may be reduced.Doug just dislikes any uncertainty and has developed a negative attitude about work and the proposed changes.Another colleague,Tony,is afraid that his job may be in jeopardy and that he may be laid off.

-Referring to SCENARIO 10-4,the source of Doug's resistance is

• A)low tolerance for change.
• B)self-interest.
• C)misunderstanding.
• D)fear of the unknown.
• E)lack of trust.

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Definitions:

LIBOR

The London Interbank Offered Rate, once a benchmark interest rate at which major global banks lend to one another.

Treasury-Bill Rate

The interest rate yield on U.S. government short-term debt securities known as treasury bills.

Reward-to-Variability Ratio

This ratio, often called the Sharpe ratio, measures the return of an investment relative to its risk, whereby a higher ratio indicates a more desirable outcome.

Risk-Free Asset

An investment perceived to have no risk of financial loss, often exemplified by government bonds.