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Amy Lou Works for a Small Business Firm That Specializes

Question 151

Multiple Choice

Amy Lou works for a small business firm that specializes in the home furnishing design business.Amy Lou is the head of the textiles department and coordinates with twenty-five textile manufacturers around the world to ensure that her firm has the best supplies on the market.Each quarter,Amy Lou meets with each of the manufacturers and then brings back her top picks to share with the rest of her team at her company.The company's owner values Amy Lou's opinions,especially since the company's profits have continually increased for ten years.This year; however,the company's overhead costs have increased,and Amy Lou and her team need to figure out why. Required:
Which of the following can be said is a drawback of having Amy Lou serve in the role described above?​


A) ​Amy Lou controls all of the information about which types of textiles the firm should purchase.
B) ​Amy Lou lacks formal authority when it comes to making decisions about the company's budget.
C) ​Amy Lou is inexperienced and makes poor choices that impact the firm's bottom line negatively.
D) ​Amy Lou's decision to work with international buying centers has led to an increase in the firm's overhead costs.
E) ​Amy Lou has to surrender her power to more influential team members when it comes to making purchase decisions.

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