Muhammad Is a New Divisional Manager

question 27

Multiple Choice

Muhammad is a new divisional manager. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
-In observing the departments in his division, Muhammad notices that some managers with wide spans of control seem to perform more effectively than other managers with similarly-sized spans of control. Which of the following statements is most likely true regarding the high-performing managers?

• A) The employees within their departments have poor communication with each other.
• B) These managers discourage employee autonomy, which produces more uniform departmental results.
• C) The employees within their departments tend to compete to reach productivity goals, which boosts performance.
• D) These managers are paid higher salaries than the low-performing managers.
• E) The employees within their departments are highly skilled and very knowledgeable about their jobs.

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Definitions:

Note Payable

A financial liability representing a written promissory note to pay a specific sum of money to another entity on a specific future date or on demand.

Debit/Credit

Accounting terms where a debit increases asset or expense accounts, and decreases liability, revenue or equity accounts; a credit does the opposite.

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid.