According to Peter Drucker,which of the Following Statements About Hiring

question 31

Multiple Choice

According to Peter Drucker,which of the following statements about hiring family members is not true?

• A) Family members need to be as competent and hard working as any unrelated employee.
• B) Family-managed businesses need to staff key positions with nonfamily professionals.
• C) Management succession should be entrusted to someone neither part of the family nor part of the business.
• D) No matter how many qualified,nonfamily professionals are in the company,all top positions should be held by family members.

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Definitions:

Conversion Activities

Activities in manufacturing that convert raw materials into finished goods.

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all inventory items.

Overhead Costs

Indirect costs incurred in the running of a business that cannot be directly attributed to any specific product or service.

Process Costing System

A method of costing used where identical or similar items are produced in mass, costs are accumulated for a fixed period and assigned to all units produced.