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978-0134237473 Chapter 1 Lecture Note
Chapter 1 – Managers and Management CHAPTER 1 MANAGERS AND MANAGEMENT LEARNING OUTCOMES After reading this chapter, students should be able to: 1-1. Tell who managers are and where they work. 1-2. Define management. 1-3. Describe what managers do. 1-4. […]
978-0134237473 Chapter 1 Solution Manual
DISCUSSION QUESTIONS 1-1 What is an organization and what characteristics do organizations share? Answer: An organization is a systematic arrangement of people brought together to accomplish some specific purpose. All organizations share three common characteristics: 1) 1-2 How do managers […]
978-0134237473 Chapter 10 Lecture Note
Chapter 10 – Understanding Groups and Managing Work Teams CHAPTER 10 UNDERSTANDING GROUPS AND MANAGING WORK TEAMS LEARNING OUTCOMES After reading this chapter, students should be able to: 10-1. Define group and describe the stages of group development. 10-2. Describe […]
978-0134237473 Chapter 10 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 10-1 Define a group and describe the stages of group development. A group is two or more interacting and interdependent individuals who come together to achieve specific goals. Formal The forming stage consists of two […]
978-0134237473 Chapter 11 Lecture Note Part 1
Chapter 11 – Motivating and Rewarding Employees CHAPTER 11 MOTIVATING AND REWARDING EMPLOYEES LEARNING OUTCOMES After reading this chapter, students should be able to: 11-1. Define and explain motivation. 11-2. Compare and contrast early theories of motivation. 11-3. Compare and […]
978-0134237473 Chapter 11 Lecture Note Part 2
IV. WHAT CURRENT MOTIVATION ISSUES DO MANAGERS FACE? A. How Can Managers Motivate Employees When the Economy Stinks? 1. Tough economic times leave companies with tight budgets, minimal or no pay raises, benefit cuts, no bonuses, long hours doing the […]
978-0134237473 Chapter 11 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 11-1 Define and explain motivation. Motivation is the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal. The energy element is a measure of 11-2 Compare and contrast early […]
978-0134237473 Chapter 12 Lecture Note Part 1
Chapter 12 – Leadership and Trust CHAPTER 12 LEADERSHIP AND TRUST LEARNING OUTCOMES After reading this chapter, students should be able to: 12-1. Define leader and leadership. 12-2. Compare and contrast early leadership theories. 12-3. Describe the four major contingency […]
978-0134237473 Chapter 12 Lecture Note Part 2
I. WHAT IS LEADERSHIP LIKE TODAY? A. What Do the Four Contemporary Views of Leadership Tell Us? 1. Leader-member exchange (LMX) theory says that leaders create in-groups and out-groups and those in the in-group will have higher performance ratings, less […]
978-0134237473 Chapter 12 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 12-1 Define leader and leadership. A leader is someone who can influence others and who has managerial authority. Leadership is a process of leading a group and influencing that 12-2 Compare and contrast early leadership […]
978-0134237473 Chapter 13 Lecture Note
Chapter 13 – Managing Communication & Information CHAPTER 13 MANAGING COMMUNICATION AND INFORMATION LEARNING OUTCOMES After reading this chapter, students should be able to: 13-1. Describe what managers need to know about communicating effectively. 13-2. Explain how technology affects managerial […]
978-0134237473 Chapter 13 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 13-1 Describe what managers need to know about communicating effectively. Communication is the transfer and understanding of meaning. There are seven elements in the communication process. First there is a sender or source who has […]
978-0134237473 Chapter 14 Lecture Note
Chapter 14 – Foundations of Control CHAPTER 14 FOUNDATIONS OF CONTROL LEARNING OUTCOMES After reading this chapter, students should be able to: 14-1. Explain the nature and importance of control. 14-2. Describe the three steps in the control process. 14-3. […]
978-0134237473 Chapter 14 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 14-1 Explain the nature and importance of control. Control is the management function that involves monitoring activities to ensure that they’re being accomplished as planned and 14-2 Describe the three steps in the control process. […]
978-0134237473 Chapter 15 Lecture Note Part 1
Chapter 15 – Operations Management CHAPTER 15 OPERATIONS MANAGEMENT LEARNING OUTCOMES After reading this chapter, students should be able to: 15-1. Define operations management and explain its role. 15-2. Define the nature and purpose of value chain management. 15-3. Describe […]
978-0134237473 Chapter 15 Lecture Note Part 2
I. WHAT CONTEMPORARY ISSUES DO MANAGERS FACE IN MANAGING OPERATIONS? A. Introduction 1. Every aspect of the economy needs to be re-examined and many products must be redesigned for greater efficiency. B. What Role Does Technology Play in Operations Management? […]
978-0134237473 Chapter 15 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 15-1 Define operations management and explain its role. Operations management is the transformation process that converts resources into finished goods and services. Manufacturing organizations produce physical goods. Service organizations produce 15-2 Define the nature and […]
978-0134237473 Chapter 2 Lecture Note
Chapter 2 – The Management Environment CHAPTER 2 THE MANAGEMENT ENVIRONMENT LEARNING OUTCOMES After reading this chapter, students should be able to: 2-1. Explain what the external environment is and why it’s important. 2-2. Discuss how the external environment affects […]
978-0134237473 Chapter 2 Solution Manual
DISCUSSION QUESTIONS 2-1 How much impact do managers actually have on an organization’s success or failure? Answer: The omnipotent view supports the idea that a manager is directly responsible for the success and failure of the organization. Top CEOs (and […]
978-0134237473 Chapter 3 Lecture Note Part 1
Chapter 3 – Integrative Managerial Issues CHAPTER 3 INTEGRATIVE MANAGERIAL ISSUES LEARNING OUTCOMES After reading this chapter, students should be able to: 3-1. Explain globalization and its impact on organizations. 3-2. Discuss how society’s expectations are influencing managers and organizations. […]
978-0134237473 Chapter 3 Lecture Note Part 2
Technology and the Manager’s Job The Ethics of Data Analytics Every time you click on anything in Facebook or do a search in Google or purchase anything on Amazon or post anything on Instagram, data is being collected about you. […]
978-0134237473 Chapter 3 Solution Manual
DISCUSSION QUESTIONS 3-1 How does the concept of a global village affect organizations and managers? 3-2 Describe the different types of global organizations and the ways that organizations can go global. Answer: A multinational corporation (MNC) refers to a broad […]
978-0134237473 Chapter 4 Lecture Note Part 1
Chapter 4 – Foundations of Decision Making CHAPTER 4 FOUNDATIONS OF DECISION MAKING LEARNING OUTCOMES After reading this chapter, students should be able to: 4-1. Describe the decision-making process. 4-2. Explain the three approaches managers can use to make decisions. […]
978-0134237473 Chapter 4 Lecture Note Part 2
I. HOW DO GROUPS MAKE DECISIONS? A. Introduction 1. Many decisions in organizations, especially important decisions that have far-reaching effects on organizational activities and personnel, are typically made in groups. 2. In many cases, these groups represent people who will […]
978-0134237473 Chapter 4 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 4-1 Describe the decision-making process. The decision-making process consists of eight steps: (1) identify the problem, (2) identify the decision criteria, (3) weight the criteria, (4) develop alternatives, (5) analyze alternatives, (6) select alternative, (7) […]
978-0134237473 Chapter 5 Lecture Note Part 1
Chapter 5 – Foundations of Planning CHAPTER 5 FOUNDATIONS OF PLANNING LEARNING OUTCOMES After reading this chapter, students should be able to: 5-1. Discuss the nature and purposes of planning. 5-2. Explain what managers do in the strategic management process. […]
978-0134237473 Chapter 5 Lecture Note Part 2
I. HOW DO MANAGERS SET GOALS AND DEVELOP PLANS? A. What Types of Goals Do Organizations Have and How Do They Set Those Goals? 1. Planning involves two important aspects: goals and plans. 2. Types of Goals a) Stated goals […]
978-0134237473 Chapter 5 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 5-1 Discuss the nature and purposes of planning. As the primary management function, planning establishes the basis for all the other things that managers do. The planning we’re concerned with is formal planning; that is, […]
978-0134237473 Chapter 6 Lecture Note Part 1
Chapter 6 – Organizational Structure and Design CHAPTER 6 ORGANIZATIONAL STRUCTURE AND DESIGN LEARNING OUTCOMES After reading this chapter, students should be able to: 6-1. Describe six key elements in organizational design. 6-2. Identify the contingency factors that favor the […]
978-0134237473 Chapter 6 Lecture Note Part 2
I. WHAT CONTINGENCY VARIABLES AFFECT STRUCTURAL CHOICE? A. Introduction 1. The most appropriate structure to use will depend on contingency factors. 2. Exhibit 6-7 describes two organizational forms: mechanistic and organic. 3. The mechanistic organization (or bureaucracy) was the result […]
978-0134237473 Chapter 6 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 6-1 Describe six key elements in organizational design. The first element, work specialization, refers to dividing work activities into separate job tasks. The second, departmentalization, is how jobs are grouped together, which can be one […]
978-0134237473 Chapter 7 Lecture Note Part 1
Chapter 7 – Managing Human Resources CHAPTER 7 MANAGING HUMAN RESOURCES LEARNING OUTCOMES After reading this chapter, students should be able to: 7-1. Describe the key components of the human resource management process and the important influences on that process. […]
978-0134237473 Chapter 7 Lecture Note Part 2
IHOW ARE EMPLOYEEES PROVIDED WITH NEEDED SKILS AND KNOWLEDGE? A. How Are New Hires Introduced to the Organization? 1. Once selected, the job candidate needs to be introduced to the job and organization —orientation. 2. The major objectives of orientation: […]
978-0134237473 Chapter 7 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 7-1 Describe the key components of the human resource management process and the important influences on that process. The HRM process consists of eight activities that will staff an organization with competent, high-performing employees who […]
978-0134237473 Chapter 8 Lecture Note Part 1
Chapter 8 – Managing Change and Innovation CHAPTER 8 MANAGING CHANGE AND INNOVATION LEARNING OUTCOMES After reading this chapter, students should be able to: 8-1. Define organizational change and compare and contrast views on the change process. 8-2. Explain how […]
978-0134237473 Chapter 8 Lecture Note Part 2
I. WHAT REACTION DO EMPLOYEES HAVE TO ORGANIZATIONAL CHANGE? A. What Is Stress? 1. Stress is the response to anxiety over intense demands, constraints, or opportunities. a) It is positive when the situation offers an opportunity for one to gain […]
978-0134237473 Chapter 8 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 8-1 Define organizational change and compare and contrast views on the change process. Organizational change is any alteration of an organization’s people, structure, or technology. The 8-2 Explain how to manage resistance to change. People […]
978-0134237473 Chapter 9 Lecture Note Part 1
Chapter 9 – Foundations of Individual Behavior CHAPTER 9 FOUNDATIONS OF INDIVIDUAL BEHAVIOR LEARNING OUTCOMES After reading this chapter, students should be able to: 9-1. Identify the focus and goals of organizational behavior (OB). 9-2. Explain the role that attitudes […]
978-0134237473 Chapter 9 Lecture Note Part 2
I. WHAT IS PERCEPTION AND WHAT INFLUENCES IT? A. Introduction 1. Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. 2. Research demonstrates that individuals may look at […]
978-0134237473 Chapter 9 Solution Manual
REVIEW AND APPLICATIONS CHAPTER SUMMARY 9-1 Identify the focus and goals of organizational behavior (OB). OB focuses on three areas: individual behavior, group behavior, and organizational aspects. The goals of OB are to explain, predict, and influence employee behavior. Six […]
978-0134237473 Module CAREER MODULE
Career Module – Building You Career CAREER MODULE BUILDING YOUR CAREER A career is defined as the sequence of work positions held by a person during his or her lifetime. Students should realize that a person’s career is always under […]
978-0134237473 Module ENTREPRENEURSHIP MODULE
Entrepreneurship Module – Managing Entrepreneurial Ventures ENTREPRENEURSHI P MODULE MAN AGING ENTREPRENEURIAL VENTURES This module presents information to provide students with a foundational knowledge of major entrepreneurial issues in today’s dynamic business environment. Entrepreneurs engage in a variety of activities […]
978-0134237473 Module HISTORY MODULE
History Module – A Brief History of Management’s Roots HISTORY MODULE A BRIEF HISTORY OF MANAGEMENT’S ROOTS Since the birth of modern management theory in the early 1900s, management experts have developed theories to help organizations and their managers coordinate […]
978-0134237473 Module QUANTITATIVE MODULE
Quantitative Module – Quantitative Decision-Making Aids QUANTITATIVE MODULE QUANTITATIVE DECISION-MAKING AIDS In the study of this module, the authors introduce payoff matrices, decision trees, break-even analysis, ratio analysis, linear programming, queuing theory, and economic order quantity. The purpose of each […]
BUS 30197
________ is the deliberate manipulation of information by the sender to make it appear more favorable to the receiver. A) Selective perception B) Information overload C) Jargon D) Filtering In reality, all organizations have ________. A) a single goal B) […]
BUS 31964
A new cell phone battery doubles battery life but also increases the cost of the phone. This battery adds ________. A) no value to the phone since it increases the cost B) value to the phone only if the cost […]
BUS 32117
Downsizing seems to harm ________. A) victims who are dismissed only B) both victims who are dismissed and survivors who stayed on C) survivors who stayed on only D) managers who carried out the dismissals and their families only Workers […]
BUS 51181
Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales. Organizational design is the process in which managers change or develop an organization’s structure. TRUE Explanation: […]
BUS 59254
The first step in the six-step strategic management process is to ________. A) analyze the organization’s strengths and weaknesses B) identify the organization’s mission C) identify feasible strategies D) analyze the opportunities the organization has The controlling management function is […]
BUS 77807
In the 1960s and 1970s, companies in Japan and Germany began to catch up with U.S. firms by focusing on quality. A weakness of the divisional structure is that duplication of activities tends to occur. TRUE Explanation: A divisional structure […]
BUS 97788
The political skills of a manager consist mainly of the ability to understand the workings of government and to present information effectively to others in the form of political speechmaking. Nonverbal communication is a minor part of the communication that […]
BUSOP 16532
A key difference between Fayol’s and Mintzberg’s view of management is that Fayol’s view was based on empirical observations of managers in action. A utilitarian view of ethics focuses on consequences and the greatest good for the greatest number of […]
BUSOP 41435
The “father” of scientific management was ________. A) Henri Fayol B) Robert L. Katz C) Henry Mintzberg D) Frederick Winslow Taylor All organizations have ________ that define(s) the organization’s purpose and reason for existing. A) limits B) rules C) structure […]
BUSOP 56436
In Lewin’s view, the only way to effect change is to increase the driving forces that direct change away from the status quo. Employers cannot legally discriminate with regard to race, sex, or religion, but there are no laws against […]
BUSOP 69605
A problem with the theories of both Maslow and McGregor is that they ________. A) made no intuitive sense B) focused exclusively on fear as a motivating factor C) were never questioned by researchers D) were never supported by empirical […]
BUSOP 74841
An organization is ________. A) the physical location where people work B) any collection of people who perform similar tasks C) a deliberate arrangement of people to accomplish some specific purpose D) a group of individuals focused on profit-making for […]
BUSOPMT 55812
Organizational change can be any alteration in an organization’s people, structure, or technology. The Internet has increased the cost of transmitting voices, data, and images. FALSE Organizations are not legally required to provide benefits of any type for employees. FALSE […]
BUSOPMT 97712
Core competencies include an organization’s major capabilities and its resources. Because heuristics simplify the decision-making process, they are unlikely to lead to errors. FALSE Explanation: By virtue of their simplicity, heuristics can lead to many different kinds of biases and […]
MGMT 16230
Creativity is valued because it helps identify new and viable alternatives that have not previously been considered. Research has shown that a majority of American employees trust the leaders of the companies they work for. FALSE Explanation: According to a […]
MGMT 34229
All of the following are examples of informational roles according to Mintzberg EXCEPT ________. A) entrepreneur B) monitor C) disseminator D) spokesperson An “accidental entrepreneur” is someone who became an entrepreneur because he or she ________. A) always had a […]
MGMT 42625
Franchising is used widely by ________. A) universities B) accounting firms C) restaurant chains D) electric power companies Which of the following is NOT recognized as a way to motivate contingent workers? A) promise of permanent employment in the future […]
MGMT 47751
Looking for ways to make their organization more flexible and innovative, today’s managers may choose this kind of structure. A) simple B) divisional C) functional D) team Which statement accurately defines work specialization? A) It is the degree to which […]
MGMT 64979
High cohesiveness combined with a strong alignment between group goals and organizational goals typically results in this. A) strong productivity increase B) strong productivity decrease C) small productivity decrease D) no productivity change Which of the following levels of management […]
MGMT 84451
Legal issues for an entrepreneurial organization typically are addressed after the organization is up and running. The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. The shop is likely to make […]
MGMT 84945
To improve workplace diversity, a manager might ________. A) advertise in ethnic newspapers and Internet sites B) tighten his recruiting net C) solicit referrals from existing employees D) post a notice that states he is an equal opportunity employer A […]
MGMT 87241
A cell phone company might ask managers to do some environmental scanning of blogs that deal with electronics as a way to ________. A) obtain new customers B) identify emerging trends C) obtain new advertisers D) identify potential rivals Most […]
MSE 41065
Operations management is a subsystem of the transformation process. A successful visionary leader “jump-starts” the future. TRUE Explanation: Successful visionary leaders create a powerful image of a possible future that is easy to grasp. Followers latch on to this vision […]
MSE 66010
Departmentalization is how jobs are grouped. Productivity is not important to value chain management. FALSE Explanation: Though value chain management is more effectiveness than efficiency oriented, productivity is still important. For example, customers may want a great pair of sneakers, […]
MSE 68731
The current research on managerial skill points to four general management skills. Which of the following is NOT one of the four skills? A) Political B) Interpersonal C) Conceptual D) Scientific Production data for the number of hours required per […]
MSE 75726
The great advantage of a written message is that it ________. A) is informal B) is easy to provide feedback for C) is unambiguous D) provides a permanent record Global Operations Report (Scenario) As Vice President of Global Expansion for […]
MSE 84787
In organizations such as Saint-Gobain Performance Plastics, ________ are brought together to work on the company’s premises. A) customers and company employees B) current and retired employees C) competitors and customers D) customers and suppliers Which of the following is […]
MSE 92713
In a global team, team members should guard against ________, which can be a source of discord and resentment among team members. A) ambiguity B) risk C) stereotyping D) diversity Early users of work specialization in the early twentieth century […]
OIM 32626
Allowing employees to participate in the change process is NOT a common way to deal with resistance to organizational change. Deming’s 14 points were useful in their time but are now largely considered to be obsolete. FALSE Explanation: Deming’s 14 […]
OIM 40965
After a thorough company-wide self-examination, company Y decides to set up work teams. This is an example of ________. A) an internal change causing an external change B) an internal change causing another internal change C) an external change causing […]
OIM 54496
Jared’s boss encourages employees to participate in the decision-making process but does not give them complete freedom to do as they like. She has this kind of leadership style. A) monarchial B) autocratic C) laissez-faire D) democratic Early proponents of […]
OIM 65717
High cohesiveness always results in a productivity increase. Team leadership is becoming less important in today’s world because teams don’t need leaders. FALSE Explanation: All teams need leaders. If anything, team leadership is becoming more important in the current business […]
OIM 83401
All organizations have a structure that in some ways serves to define and limit the behavior of members of the organization. A highly centralized organization is one in which subordinates are given a lot of opportunity to make decisions. FALSE […]
Operation Management 41004
Older workers tend to resist change more than younger workers because they ________. A) have less invested in the current system B) have more invested in the current system C) have confidence in themselves D) have less to lose A […]
Operation Management 42830
Goal-setting tends to do well in ________, where its basic ideas align well with general cultural values. A) North America B) South America C) India and China D) the Middle East As represented in a hierarchical organization diagram, authority is […]
Operation Management 51521
Each work activity in a Gantt chart is represented by two horizontal bars that identify the ________. A) goal and the date B) the date and the manager’s name C) goal and actual progress D) actual progress and manager’s name […]
Operation Management 94519
Vroom and Yetton’s leader-participation model suggests that leaders should adjust to the situation. The number of managers who face “white-water rapids” metaphor conditions is getting smaller. FALSE Explanation: In today’s world, “white-water” situations are on the increase rather than the […]
OPMGT 18454
Selective perception involves a listener hearing what he or she wants to hear. Studying management can be extremely useful even for those who don’t plan to be managers themselves. TRUE Explanation: Most people will either be managers or be managed. […]
OPMGT 23828
Which of the following is a real time form of communication? A) email B) fax C) Skype D) extranet The requirement for value chain management that is most closely associated with trust is ________. A) organizational culture and attitudes B) […]
OPMGT 41171
How does empathy improve the communication process? A) Empathy helps the speaker focus on what the listener would like to hear. B) Empathy helps the listener focus on the speaker’s actual words. C) Empathy helps the listener get rid of […]
OPMGT 62937
Deming felt that doing quality work was this. A) a job requirement B) a goal C) a standard to strive toward D) optional for most jobs Maslow’s theory is a hierarchy because ________. A) all needs are equal B) all […]
OPMGT 76251
Nonvisionary entrepreneurial leaders usually outperform visionary entrepreneurial leaders. Managers identify a problem by comparing the current state of affairs to some standard. TRUE Explanation: The standard for comparison might be a goal that has been set or comparison with some […]
OPMT 15846
It is a good idea for an entrepreneur to develop a network of trusted friends and advisors to help with problems and decisions. When decisions tend to be made at lower levels in an organization, the organization is said to […]
OPMT 51693
One of the first things an entrepreneur does is look for potential opportunities in the marketplace. A rule is simpler than a policy or a procedure to implement. TRUE Explanation: A rule is a simple statement that can be applied […]
OPMT 64929
Organizational behavior is primarily concerned with group interactions. One place in which technology has little impact is the fast-food restaurant business. FALSE Explanation: Companies are using technology to do all sorts of things to improve productivity in fast-food restaurants. For […]
OPMT 72779
An important trait of a(n)________ leader in path-goal theory is friendliness. A) achievement-oriented B) directive C) participative D) supportive Mia, a manager at Best Buy, should be able to find Q, the most economic order size for a product, by […]
OPMT 73379
Decision trees show the profit outcomes for the plans for two doughnut stores in two different locations in a strong and a weak economy for the future. If the investor interested in building a store is optimistic, in which location […]
OPMT 82109
This type of business plan is a step up from the simplest type of business plan. A) summary business plan B) executive summary C) synopsis-type plan D) full business plan A construction site supervisor who sees an impending thunderstorm and […]
QSO 23883
Nonverbal communication is an important part of active listening. Jargon has no place in effective communication. FALSE Explanation: Jargon is shorthand language and can be useful among individuals who are working close together on the same project. A current ratio […]
QSO 36040
Which of the following is a driver of globalization? A) greater emphasis on proactive internationalization B) internationalization of firm’s value chain C) integration of world financial markets D) globalization of services A manager has a choice of three bank CDs […]
QSO 38726
A key difference between a team structure and a matrix structure is that a team structure ________ while a matrix structure does not. A) empowers group members B) works on projects C) has fairly permanent groups or teams D) holds […]
QSO 57042
The socioeconomic view of social responsibility is that a for-profit organization’s responsibility is ________. A) to maximize stockholder wealth B) to maximize both profits and the general welfare C) to do what only the law requires D) to maximize opportunities […]
QSO 68152
Signing up for a college course that varies in length from 2 to 30 weeks with classes that last from 20 minutes to 3 hours is an example of which metaphor of change? A) Three step model B) Calm-waters C) […]
QSO 98510
Which of the following would cause a well-run company to become highly leveraged? A) when the money that the company can earn investing the money that it borrows is equal to the cost of borrowing B) when the money that […]