When investing in your company's 401(k) plan, you choose a mix of foreign and domestic stocks, bonds, and mutual funds. This mix of stocks helps to lessen your risk. The factor that you used to select your investments was:
A) liquidity needs.
B) asset allocation goals.
C) your investment horizon.
D) your risk tolerance.
E) investment diversification.
Question 2
The team you manage reduced defects by 20 last month. Much of this was due to the leadership of your floor supervisor, who launched a process improvement initiative. As a reward, you give each team member a 2500 bonus. In addition, you give only the floor supervisor a plaque and two extra paid days off. This makes some team members unhappy because they perceive inequity. Which of the following is the best solution?
A) Eliminate the rewards for everyone, including the floor supervisor.
B) Give everyone, including the floor supervisor, equal rewards.
C) Eliminate the extra rewards you gave the floor supervisor.
D) Ensure you have communicated the basis of the rewards to the team.
E) Let the unhappy employees work less to equalize the reward ratio.
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