A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization.

Active management by exception involves:

A) abdicating responsibilities and avoiding decisions.
B) intervening only if standards not met.
C) watching for deviations from rules and standards and taking corrective action.
D) the exchange of rewards in exchange for mutually agreed-upon goal accomplishment.
E) focusing on organizational performance.

A person who makes a misrepresentation but has no knowledge about the falsity of the statement does not have ________.

A) information
B) premeditation
C) planning
D) plotting
E) scienter

Sylas, a manager at LiveWell Corp., believes that he can fire Madison, his subordinate, at any time he wishes to do so. Which of the following, if true, would help strengthen Sylas' belief?

A) Madison has not submitted her required paperwork as part of her job offer.
B) Sylas has not provided Madison with an offer letter.
C) Madison is an underperformer and fails to arrive at work on time.
D) Madison does not have a specific employment contract with the company.
E) Madison has not received a letter of employment from the company.

The Foreign Corrupt Practices Act (FCPA) makes it illegal for

A) countries who are not members of the EU to invest in the U.S.
B) U.S. firms to invest overseas in businesses.
C) foreign firms to offer nonmonetary gifts to U.S. officials.
D) foreign firms to offer bribes to U.S. firms.
E) U.S. firms and their representatives to offer bribes overseas.

Lusk Corporation produces and sells 10,000 units of Product X each month.The selling price of Product X is $40 per unit, and variable expenses are $32 per unit.A study has been made concerning whether Product X should be discontinued.The study shows that $70,000 of the $120,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued.If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

A) ($30,000)
B) $30,000
C) $40,000
D) ($40,000)

A fixed budget is based on a single predicted amount of sales or other activity measure.