The Span of Control for a Manager

question 105

Multiple Choice

The span of control for a manager:

• A)should never exceed 7 subordinates.
• B)is no longer a relevant issue in this day of computerized offices.
• C)depends on a number of factors,and can vary from one manager to another.
• D)varies somewhat from manager to manager,but most managers operate best with a span of control of about 9 employees.

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Definitions:

Price/Earnings Ratio

A valuation metric for evaluating the relative worth of a company, calculated as market value per share divided by earnings per share.

Market Price Per Share

This is the current price at which a single share of a company's stock can be bought or sold in the market.

Return on Equity

A measure of a corporation's profitability, calculated as net income divided by shareholder's equity.

Debt-Equity Ratio

A financial metric used to evaluate a company's leverage, by calculating the division of its total debts by the equity of its investors.