The options were not listed. However, to help you answer the question, we will look at a general overview of Theory X managers. Generally, Theory X managers;
- Have a pessimistic view of employees
- Believe that employees have to be forced to work.
- Think that rewards and punishments are the only ways to motivate employees to work.
- Control, threaten, and supervise employees to get work done.
Given these assumptions held by Theory X managers, you can now select an option that does not fit into the descriptions.
The theories X and Y assumptions were developed by Douglas McGregor to show how the beliefs that employers hold about their employees can affect their work relationships with them.
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Answer:
The accrued interest payable to be reported on December 31, 2014 will be $240 and option a is the correct answer.
Explanation:
The interest rate given on the notes payable is the annual rate. Following the accrual basis of accounting, the revenues and expenses for a period should be matched and recorded in their respective periods. Thus, the interest relating to the period from October to December will be recorded as an expense on 31 December 2014 and debited to interest expense and credited to interest payable as the interest will be paid at maturity.
The interest expense for the 3 month period from October to December is,
Interest expense = 16000 * 0.06 * 3/12 = $240
The entry will be,
31 Dec 2014 Interest expense $240 Dr
Interest Payable $240 Cr
Answer: The firm should produce more output when marginal cost equals marginal revenue.
Explanation: A business can maximize it's profit by producing at a level where marginal cost equals marginal revenue. As long as the Marginal revenue is not lower than marginal cost the firm can produce more to maximize their profit.