In Japanese Business Organizations, Subordinates Do Not Share Bad News

question 40

Multiple Choice

In Japanese business organizations, subordinates do not share bad news with their superiors. This lack of internal communications can be attributed to

• A) the Japanese emphasis on individualism.
• B) the Japanese emphasis on hierarchical relationships.
• C) the Japanese emphasis on competition and individualism.
• D) the insistence on solving problems at the point of origin and not escalating them.
• E) Guanxi, the Japanese practice of personal connections.

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Definitions:

Inventory Levels

The quantity of goods and materials on hand available for sale or used in production at any given time within a business.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and overhead) in the cost of goods sold and treats fixed overhead expenses as period costs.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards used in the United States for preparing financial statements.

Variable Costs

Costs that vary directly with the level of production or sales volume.