Jeff Wants to Start His Own Business and He's Eager

question 25

Multiple Choice

Jeff wants to start his own business and he's eager to make it successful. He remembers his sociology professor talking about socialization theory, human capital, and allocation theory. Armed with this knowledge, what should be Jeff's strategy in building up his business?

• A) Avoid hiring too many college graduates. They demand higher salaries, which drains money from profit margins.
• B) Hire more workers than you think you'll need. Not all of them will stay with the company for long.
• C) Hire mostly college graduates. They'll have the needed skills and productivity levels.
• D) Outsource as many positions as possible to keep personnel costs low.

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Definitions:

Support Department

A division or unit within an organization dedicated to providing necessary services and support to the operational sectors, facilitating their functions.

Advertising Campaigns

Organized series of promotional activities or advertisements with a specific message or purpose, aimed at reaching a particular audience.

Transfer Price

The price at which goods and services are sold between divisions within the same company or between subsidiaries of a parent company.

Market Price

The current price at which an asset or service can be bought or sold in a open market.