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Table 16.2 Loading Dock One, an International Products Retailer, Is Going Through

question 54

Multiple Choice

Table 16.2
Loading Dock One, an international products retailer, is going through organizational change. The entrance of several low cost retailers into their market of quality international gifts is forcing them to seek greater efficiencies so they can lower costs and prices. Unfortunately, their employees are resisting the changes. They understand competition is increasing, but they fear the changes will eliminate jobs or diminish the variety of their work. Not only are the employees resisting, but it seems that the way LDO has hired, trained, and rewarded employees also hinders the changes they want to make. Some managers also are resisting the change because they can see their staffs being reduced or their entire work units eliminated.
-Refer to Table 16.2. Based on what they want, their best target for change would be:

Definitions:

Risk-Free Rate

A hypothetic return rate on a risk-free investment, usually shown by the returns on government securities.

Expected Return

The weighted average of all possible returns from an investment, accounting for the likelihood of each outcome.

Standard Deviation

Standard Deviation measures the amount of variation or dispersion from the average, indicating the risk associated with a variable.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, typically within a year.