Identify the Correct Statement About Succession Planning

question 77

Multiple Choice

Identify the correct statement about succession planning.

• A) It ensures that middle management systematically reviews leadership talent in the company.
• B) It provides a set of developmental experiences that managers must complete to be considered for top management positions.
• C) All companies have a succession plan ready when they need one.
• D) It identifies a specific replacement for each managerial position within a company.
• E) It focuses on low-potential and medium-potential employees.

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Definitions:

LIFO

Last In, First Out, an accounting method used to value inventory that assumes the most recently produced items are the first to be sold.

FIFO

First-In, First-Out, an accounting method where the oldest inventory items are recorded as sold first.

ROE

ROE, or Return on Equity, measures a corporation’s profitability by revealing how much profit it generates with the money shareholders have invested.

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.