Bob Has Been Running the Handy Hardware Store for a Few

question 69

Multiple Choice

Bob has been running the Handy Hardware Store for a few years now.As the business grew,he hired several mechanics who are now middle-aged and good at their jobs.Bob's son,Billy,is just out of college.Bob would like his son to take over the business,but is concerned that the middle-aged workforce might not receive the right guidance for the execution of the business from young Billy.He is also concerned about the displeasure the other employees might have at hiring Billy to run the business.If Bob hands over the business to inexperienced Billy in spite of having several well-qualified,deserving,and experienced successors among his other staff,his management philosophy would be an example of:

• A) meritocracy.
• B) nepotism.
• C) benchmarking.
• D) hedonism.

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Definitions:

Buyout

The purchase of a company's shares to gain control over it, often by another company or a group of investors.

Liquidation Price

The value at which assets are sold off quickly, typically under conditions of financial distress.

Renew

To extend the period of validity or operation of something, such as a contract or license.

Dissociate

To separate or remove oneself from a particular association, partnership, or relationship, especially in a legal or formal context.