Answer:
Option A. There exist economies of scope between diversified business units
Explanation:
The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.
Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.
Option B is not preferable option as the option of investing in different businesses is choosen in the option A.
Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.
<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.
Answer: $25 billion
Explanation:
The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:
= Deposit into banking system * Money multiplier
Money multiplier = 1 / Required reserve ratio
= 1 / 20%
= 5
Checkable deposit increase:
= 5 billion * 5
= $25 billion
Answer:
using I-language, focusing on issues and critically evaluating ideas
Explanation:
"Productive conflict" refers to giving both parties who have varying opinions a chance to speak their arguments or positions. The goal of this is for both parties to arrive at a resolution<em> in the most graceful way as possible.</em>
Using "I-language" allows the person to be heard without asserting aggressiveness. It doesn't lead to defensiveness, thereby reducing the other side from retaliating.
"Focusing on issues" allows the focus to be centered on what matters the most. This allows both parties to concentrate and deal with the issue properly.
"Critically evaluating ideas" allows each party to come up with a reasoned judgement and analyze the opinion of the other person. <u>Both positive and negative side</u> should be addressed in order for the conflict to be productive.
Answer:
<u>E) recruitment and selection</u>
<u>Explanation:</u>
The <u>human resource department </u>of an organization is responsible for assigning tax to employees after recruitment based on their abilities.
Hence, the human resource team at ICS Inc needs to improve on filling the gaps in the organization or selecting the best employee for a particular job. This role involves providing clarity regarding the tasks employees are required to perform.
Answer:
both the required reserve ratio and the market interest rate (A)
Explanation:
The Federal Reserves influences the money supply by manipulating required money banks deposit reserve ratio, market interest rate and open market operations. If the Federal reserves wants to increase the supply of money, it will reduce the required reserve ratio by banks. Thus commercial bank would have more money at their disposal to lend to clients.
Also, the Federal Reserves, which is the apex bank and regulator of ALL bank, play the role of ''lenders of last resort'', hence they lend money to commercial banks, when they are constrained financially, by this, banks are able to lend to customers with ease.
Furthermore, the Federal reserves also buys and sells securities, which it uses to either increase the supply of money or reduce the supply of money in the economy, and can use this model to also address economic problem such as inflation.
