Marjorie Is Thinking About Accepting a Job Offer at Arrow

question 227

Multiple Choice

Marjorie is thinking about accepting a job offer at Arrow Financial Services,but she is not knowledgeable about the corporate culture at the firm.Which question could she ask that would most help her get insights into the attitude toward risk that is evident at Arrow?

• A) Have any recent initiatives produced really good results?
• B) Are top executives at Arrow paid about the same as top executives at other companies?
• C) Did projects fail because of insufficient attention to detail or because people couldn't work well together?
• D) What system does Arrow use to decide whether or not to go ahead with a proposed initiative?
• E) Does Arrow put the well-being of its employees ahead of its goals for financial performance?

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Definitions:

Demand Schedule

A demand schedule is a table that shows the amount of a product or service consumers are willing and able to purchase at various prices during a specified period.

Profit-Maximizing Price

The price level at which a firm can achieve the highest possible profit on its product, based on its cost structure and the demand curve it faces.

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. It squares and then sums the market shares of all firms in the industry.

Market Shares

A part of the market that is influenced or owned by a particular company or product, usually measured as a percentage of the market's complete sales.