Which of the Following Is Most Likely to Determine the Kind

question 59

Multiple Choice

Which of the following is most likely to determine the kind of decisions that will be selected to resolve an organizational conflict?

• A) standard practices followed in the industry in which the organization operates
• B) possession of organizational power
• C) the marketing strategy followed by the organization
• D) the performance evaluation procedures used by the organization

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Definitions:

Income Summary

An account in the closing process that summarizes revenues and expenses for a period, transferring the net result to owner's equity.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business or kept as reserve.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Permanent Accounts

Balance sheet accounts that carry their ending balances over into the next accounting period, such as assets, liabilities, and equity accounts.