Middle Manager Barney Practices Favoritism When He Recommends for Promotion

question 60

Multiple Choice

Middle manager Barney practices favoritism when he recommends for promotion:

• A) a worker chosen at random.
• B) a golfing buddy who is a poor performer.
• C) a worker suggested by his boss.
• D) the best performer in the department.

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Definitions:

Noncumulative Nonparticipating

Refers to a type of preferred stock that does not allow for the accumulation of unpaid dividends if they are not declared by the board, nor does it participate in the extra profits of the company.

Cash Dividends

Payments made to shareholders out of a corporation's earnings in the form of cash.

Stable Earnings

Earnings that show little variability and predictability over a period, indicative of financial stability in a company.

Preferred Stock

A type of stock that generally provides dividends to its holders before dividends are issued to common stockholders, and typically has rights to assets before common stock upon liquidation.