Formal Organizations Have a Division of Labour and Are Set

question 21

True/False

Formal organizations have a division of labour and are set up to achieve a goal or goals. Corporations, schools, government agencies, and even political parties are examples of informal organizations.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that, if omitted, accumulate and must be paid before dividends can be paid to common shareholders.

Annual Dividend

The total amount of dividend payments made to shareholders in a year.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.