Mini-Case 17-4: Plumbers Don't Want Recognition

question 19

Multiple Choice

Mini-Case 17-4: Plumbers Don't Want Recognition
"If I ever went out to those guys and asked them if they wanted a little more recognition, they would laugh me out of the shop. People work for money." Norm Schultz had been a plumber himself for 18 years before he saved enough money to open a small plumbing contractor business. The men who worked for Norm knew what was expected of them - a fair day's work for a fair day's pay. "You don't need to tell a person that he or she is doing a good job; the person is either doing the work or not working for me!"
Norm's son-in-law was taking a management course at a local college. When Norm asked him what he was learning in class, he told him the management of people. Norm was very emphatic about managing the plumbers who worked for him. "Tell an employee what you expect from the beginning. Watch to see if they perform the job properly. Treat your people fairly and never cheat them." Norm went on to tell his son-in-law that this was the way good managers did things. "Recognition won't put bread on the table."
-The advantages of job rotation include ________.

• A)the ability to move from one job to others
• B)a greater number and variety of tasks
• C)additional flexibility for the company
• D)All of the above

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Definitions:

Leverage

The use of borrowed funds or financial instruments to increase the potential return of an investment, which can also magnify the potential for loss.

Marking to Market

The process of adjusting the value of an asset to its current market level rather than its book value or original cost.

Margin Calls

A broker's demand on an investor to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin.

Gains

The increase in value of an asset or investment, measured as the difference between the sale price and the purchase price.