We-Train-Em Has Hired You to Develop Training Materials for Its

question 90

Multiple Choice

We-Train-Em has hired you to develop training materials for its seminars.Your first assignment is to write a training manual that will assist new managers in designing an appropriate structure for their part of an organisation.Included in the manual will be information about the key questions that they must answer in deciding about the best organisational structure. One of the questions included in the training manual is 'To what degree are tasks subdivided into separate jobs?' This question addresses the issue of:

• A)formalisation
• B)work specialisation
• C)chain of command
• D)span of control

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Definitions:

Repurchase Shares

The act of a company buying back its own shares from the marketplace, reducing the amount of outstanding stock.

Debt-Equity Ratio

A ratio showcasing the relative utilization of debt and equity in the financial structuring of a company’s assets.

Required Return

The minimum expected return by an investor for investing in a particular security or project, considering the risk associated with the investment.

M&M II

Part of Modigliani and Miller's capital structure theories, specifically the proposition that the value of a firm is independent of its capital structure under certain market conditions and tax considerations.