A Division Manager Has Expanded Her Staff by 10% to Help

question 5

Multiple Choice

A division manager has expanded her staff by 10% to help reach the company's sales goals for the year. But now she finds that morale is low, which could jeopardize chances of reaching that sales goal. She increases salaries by 15% as a result, and begins meeting weekly with the team. These activities fall primarily within which function of management?

• A) leading and motivating
• B) planning
• C) organizing
• D) controlling

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue, indicating the company's financial performance over a period.

Net Cash Flow

The difference between a company's cash inflows and outflows within a given period, indicating the company's cash liquidity.

Accounts Receivable

Payables to a company from clients for the use or delivery of goods or services, not yet reimbursed.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.