Matthew Is a New Divisional Manager

question 88

Multiple Choice

Matthew is a new divisional manager.In reorganising his department he must make some decisions regarding the span of control. The question of span of control determines:

• A)how jobs will be grouped.
• B)who reports to whom.
• C)the number of levels and managers an organisation has.
• D)where decisions are made.

---

Definitions:

Current Assets

Current assets are all assets that a company expects to convert to cash or use up within one year.

Current Liabilities

Current liabilities are a company's liabilities that are due within one fiscal year or the operating cycle, whichever is longer, and include debts such as accounts payable and short-term loans.

Sales Taxes

Taxes imposed by governments on the sale of goods and services, usually calculated as a percentage of the sale price.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.