Solved

Refer to the Scenario Below to Answer the Following Questions

question 66

Multiple Choice

Refer to the scenario below to answer the following questions.
Embarking on TQM at Maestro Motors (Scenario)
Hector glanced at the watch and sighed. It was already 6:30 and he should be heading home for dinner. Dina would be mad because he was late again. He closed the main garage door at his auto repair shop, Maestro Motors. His two mechanics has just left even though the queue of cars waiting for repairs was longer than usual. He couldn't ask them to work overtime every night. Things were not working well at the moment and he needed to do something to get things turned around. Last night, over a beer at nearby pub, his pal Rodrigo told him about something called total quality management. It sounded like something he should look into and immediately, not in some vague future. It was not only the backup in work; he had received more than the usual number of calls from irate customers. Mostly it was about the delays in getting the cars repaired. Some, however, were about the repairs themselves. Some had even brought their cars back for re-work. Hector was determined to turn things around and that evening, after Dina and the kids were in bed, he started researching this total quality management on his computer. What he found was not only interesting, but in his mind quite doable and not that complicated.
-When the mechanics returned to work, Hector took Juan aside and explained that they needed to set some rules about making sure that whatever else was going on either in the office or the garage, everyone understood that the customer came first. He directed Juan to use his own initiative and ideas to make the customer feel important. Hector was _____________ Juan to improve the customer service process.

Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of a company, as reported in the cash flow statement.

Treasury Stock

Treasury stock consists of shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Bonds Payable

Long-term debt instruments issued by a company to raise capital, with the promise to pay back with interest at a future date.

Direct Method

A cash flow statement formulation approach that lists major classes of gross cash receipts and payments.