If the CEO of a Large, Diversified Firm Were Filling

question 19

Multiple Choice

If the CEO of a large, diversified firm were filling out a fitness report on a division manager (i.e., "grading" the manager) , which of the following situations would be likely to cause the manager to receive a better grade? In all cases, assume that other things are held constant.

• A) The division's basic earning power ratio is above the average of other firms in its industry.
• B) The division's total assets turnover ratio is below the average for other firms in its industry.
• C) The division's debt ratio is above the average for other firms in the industry.
• D) The division's inventory turnover is 6, whereas the average for its competitors is 8.

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Definitions:

Creativity

The ability to generate novel and useful solutions to problems.

Creative People

Individuals who are able to think in novel, unusual, or inventive ways and apply creative thinking to problems and situations.

Overregularization

A language development error where children apply standard grammatical rules too broadly, often leading to incorrect verbal forms or constructions.

Gestalt Psychology

The school of psychology that emphasizes the tendency to organize perceptions into wholes and to integrate separate stimuli into meaningful patterns.