A 100-year-old manufacturing firm has had an excellent reputation for high-qualityproducts, with all sales to the private sector. Recently, the firm expanded sales to thegovernment's defense department, and high profits rapidly declined. Historically, (1)personnel practices have been popular with employees-flexible work schedules andlimited supervision (resulting in high morale), and (2) security in warehouses andproduction has been limited (yet minusculepilferage occurred). In analyzing why profits have declined, which of these risks would beof least concern?O A very loyal workforce is being replaced by a younger workforce with less loyalty and morelikelihood of abusing attendance requirements and engaging in pilferage.O A younger workforce will likely be less educated and trainable.O In contract sales to the defense department, the firm is subject to tighter controls over classifiedinventories, and the loose controls needed improvement.O The past lack of locks, fences, and barriers to the firm's plant will risk more theft of expensivedefense-related inventories, and may violate defense security regulations.O None of the choices

Answer: Correct option is option (b) A younger workforce will likely be less educated and trainable.…

Answered: A 100-year-old manufacturing firm has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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