The Management of Acrosonic Is Faced with the Problem of Deciding

question 94

Multiple Choice

The management of Acrosonic is faced with the problem of deciding whether to expand the production of its line of electrostatic loudspeaker systems. It has been estimated that an expansion will result in an annual profit of $200,000 for Acrosonic if the general economic climate is good. On the other hand, an expansion during a period of economic recession will cut its annual profit to $100,000. As an alternative, Acrosonic may hold the production of its electrostatic loudspeaker systems at the current level and expand its line of conventional loudspeaker systems. In this event, the company is expected to make a profit of $40,000 in an expanding economy (because many potential customers will be expected to buy electrostatic loudspeaker systems from other competitors) and a profit of $170,000 in a recessionary economy. ​
Should management recommend expanding the company's line of electrostatic loudspeaker systems?​
Hint: The row player is the management of the company and the column player is the economy.

• A) yes
• B) no
• ​

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Definitions:

Demands

The requirements or needs that must be met, often used in the context of work, where it may refer to tasks or duties expected to be completed.

Encounter Stage

The phase in a social or professional relationship where individuals first meet and form impressions, often determining the future of their association.

Organizational Socialization Process

The method through which new employees gain the necessary knowledge, skills, and behaviors to become effective members of an organization.

Organizational Leaders

Individuals who have the responsibility and authority to guide and influence the direction, vision, and performance of an organization.