As a Response to a Rapidly Changing Marketplace, Idea Electronics

question 239

Multiple Choice

As a response to a rapidly changing marketplace, Idea Electronics found it necessary to reorganize, including a significant downsize of its middle management. This action will likely result in ___________

• A) acquiring additional firms
• B) flattening the organization and empowering employees, allowing them to get closer to the customer
• C) increasing the size of its traditional departments to handle 24/7 operations
• D) centralizing its decision making to better control its total quality management program

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Definitions:

Direct Method

A way of reporting cash flows from operating activities that lists major categories of gross cash receipts and gross cash payments.

Depreciation Expense

The distribution of a physical asset's cost throughout its lifespan.

Operating Activities

Business actions that are part of a company's primary operations, including revenue generation and expenses tied to its core business functions.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.