The Span of Control Should Be Smaller and the Number

question 7

Multiple Choice

The span of control should be smaller and the number of levels of management should be larger when:

• A) The salespeople in the company are well paid and professional
• B) The salespeople in the company are new inexperienced recruits
• C) The sales task is relatively simple
• D) The profit impact for the performance of each individual salesperson is low
• E) The sales job is defined as easy by the people hired to sell

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Definitions:

Prior Period Adjustments

Adjustments made to the financial statements to correct errors or account for omitted transactions from a previous period, not part of current period earnings.

Retained Earnings

The part of net profits not distributed as dividends, instead kept by the company for reinvestment in its main operations or for debt repayment.

Earnings Per Share

A financial metric that measures the amount of profit allocated to each outstanding share of a company's common stock.

Weighted-average

A calculation method that assigns different weights to data points, used to determine the average value of various items in a dataset that are not equally significant.