Answer:
A) kept investors happy but caused overcapitalization and debt for the railroads.
Explanation:
When a firm issued watered stock, it means that they are issuing the stock with an artificially high par value. Watered stocks were a type of fraud related to the sales of stocks with an absurd par value. You have to remember that back then, railroad companies were huge and extremely powerful, monopolies were common and information was scarce and generally manipulated. By issuing stocks with a very high par value investors were tricked into believing that the company was actually worth much more that its real value. Very few people dared to oppose the industry giants and most tried to earn money by using the same dirty tricks.
Better understand what the concept is
The most suitable strategy for all parties to communicate is by using a videoconference in which allows all of the people to have a meeting and to be able to see each of the people involved in a meeting. Using a conference call may also be useful but the lacking of it is that you may not be able to see the people you're talking to. Other choices aren't suitable as this will not allow you to talk to everyone all in the same time.
Garage corp. uses a batch-and-queue or batch-and-wait production system wherein the sub-assembly or the partially completed product is move to the work-in-progress (WIP) location, the next department to take it from WIP location, perform an operation on them and then forward the resulting work into the next WIP location to wait once again. This procedure continuous until the final product is completed. Using this system, the Garage corp. produces and maintains large inventories since it drives products to lower average unit cost, so they need to produce more products and the more products produced, the greater the inventory asset. They will produce products of low quality since workers in traditional production do not have major responsibility for quality control during their work. They strive for efficiency which means producing the best yield at the lowest cost from the available resources but in the expense of effectiveness which is the degree where an objective or target is met. It is doing something right but not doing it right. And lastly they have an information loss between its organizational areas because they operate in a disconnected manner with little integration and communication.
