An Agreement Between Managers and Lenders to Maintain a Minimum

question 20

Multiple Choice

An agreement between managers and lenders to maintain a minimum ratio of working capital can assist which of the following problems in relation to increased lender's risk?

• A) claim dilution.
• B) asset substitution.
• C) underinvestment.
• D) excessive dividend payments.

Describe the components of a fair hearing within the context of administrative law.

Recognize situations where legal recourse against administrative decisions is available.

Compare litigation with alternative dispute resolution methods.

Assess the challengeability of decisions made by government bureaucrats.

---

Definitions:

Knowledge Management

The efficient handling, organizing, and sharing of information and knowledge within an organization.

Classical Management

A theory of management focused on the efficiency of the work process through division of labor, hierarchy, and strict control mechanisms.

Total Quality Management

A management approach focused on improving the quality of all organizational processes through ongoing refinements in response to continuous feedback.

Continuous Improvement

An ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.