Suppose IBM decided to issue commercial paper in denominations of 5000 to raise a large sum of money. Because the commercial paper is secured only by IBM's reputation:
A) IBM does not have to pay back the principal.
B) shares of its stock will be sold on the primary market.
C) no collateral is involved.
D) no interest is paid.
E) IBM has to pay interest rates higher than those charged by commercial banks for short-term loans.
Question 2
Although Taylor's scientific management approach led to increased productivity, it did not address __________, and as a result, productivity only increased to a certain point.
A) job specialization
B) piece-rate pay
C) quotas
D) motivation
E) time-motion studies
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