Jane, a Secretary at a Law Firm, Had a Comfortable

question 72

Multiple Choice

Jane, a secretary at a law firm, had a comfortable job with fixed working hours. Suddenly, her boss informed her that she would have to start working extra hours from the next week. He said that the firm had received many new clients and so the workload had increased. However, he reassured her that she would be paid more for the extra work. Taken aback, Jane refused to comply with his wishes. Which of the following is a reason why she resisted the change?

• A) Jane had formed a different assessment of the proposed change.
• B) The change was unexpected and took Jane by surprise.
• C) Jane did not understand why the change was being implemented.
• D) Jane felt that it was a management tactic.
• E) Jane felt that the change was not in her best interest.

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Definitions:

Lump-sum Price

This is a total amount agreed upon for a contract that is not itemized or broken down into individual costs or charges.

Relative Market Values

The comparison of an item’s market price to other similar items in the relevant market.

Depreciation Expense

The portion of the cost of a fixed asset that is considered as an expense due to its use, wear, and tear over time.

Estimated Useful Life

The length of time, usually expressed in years or periods, that an asset is expected to be used in business operations.