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

question 14

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. It seems that the primary fear the employees have is:

Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.

Financial Leverage

The use of borrowed funds to finance the acquisition of assets, with the expectation that the income or capital gains from the assets will exceed the cost of borrowing.

Cash Ratio

A liquidity metric that measures a company's ability to pay off short-term liabilities with its cash and cash equivalents.

Debt/Equity Ratio

An index reflecting financial leverage through a company's total debts divided by the equity of its shareholders.