The Creation of Business Enterprises Where a Head Office Managed

question 24

Multiple Choice

The creation of business enterprises where a head office managed geographically-separate operational units was facilitated by:

• A)The development of management as a practical science
• B)Improvements in transportation and communication-especially the railroad and telegraph
• C)The development of the multidivisional corporation
• D)The introduction of limited liability

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Definitions:

Cash Dividends Paid

The total amount of cash distributed by a company to its shareholders as dividends during a specific period.

Retention Ratio

The share of net income that remains in the business instead of being paid out to shareholders in the form of dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales and earnings without increasing its debt or equity.

Total Asset Turnover

A financial metric that evaluates how effectively a company can produce revenue from its assets by contrasting net sales with the average total assets.