Refer to the Scenario Below to Answer the Questions That

question 125

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
New Ideas (Scenario)
Though New Ideas Inc.has been in business for 30 years,the company and its employees have seemingly been in a constant state of change.Paul Gill has been president of New Ideas for the last 15 years.During this time,he has had to change the strategic focus of the company three times.The employees have become vocal recently about the decrease in their bonus cheques and are demanding increased profits.It seems as though his competition is always introducing new products into the market,and the niches Gill thought New Ideas held leadership in are continuously changing.Recently the government has passed new legislation to increase the control of the product packaging and product contents.The technology used to manufacture the products is constantly improving to make the process more efficient.
-The technology change in the manufacturing process to make it more efficient is the result of a competitor lowering its price.Therefore,it is a(n) ________ force for change.

• A)external
• B)internal
• C)regulatory
• D)economic
• E)technological

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Definitions:

Undisclosed Principal

A situation in contract law where an agent acts on behalf of a principal, but the identity of the principal is not revealed to the third party.

Personal Liability

An individual's legal responsibility to satisfy debts or obligations from personal assets, not just those tied to a particular venture or entity.

Scope of Authority

The range or extent of power that an individual or organization legally has to perform actions or make decisions.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances.