Which of the Following Statements Describes a Disadvantage of the Product

question 82

Multiple Choice

Which of the following statements describes a disadvantage of the product manager system?

• A)Product managers are considered line personnel and therefore have little control over decision making.
• B)Product managers are strong advocates for their assigned product.
• C)Even though product managers have major responsibilities, they have relatively little direct authority.
• D)Product managers tend to remain in the same position for an extended period of time.

---

Definitions:

Financing Activity

Transactions involving changes in equity and long-term liabilities reflecting how a company raises and repays capital.

Consolidated Statement of Cash Flows

A financial statement that presents the total cash inflows and outflows of a parent company and its subsidiaries.

Non-Voting

Shares in a company that do not grant the shareholder the right to vote on corporate matters.

Cumulative Preferred Stock

Preferred stock that accumulates dividends in case they are not paid in the period they were declared, ensuring those dividends are paid out before any dividends to common shareholders.