Which of the Following Is a True Statement Regarding HR

question 71

Multiple Choice

Which of the following is a true statement regarding HR management at small businesses?

• A)Owners of firms with less than 100 employees usually handles HR tasks.
• B)Firms with less than ten employees do not have any human resources tasks.
• C)In most cases, firms with at least 30 employees can afford an HR specialist.
• D)Human resources activities in small firms tend to be extremely formal.

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Definitions:

Pro Forma Financial Statements

Financial statements based on hypothetical scenarios or assumptions about the future of a business.

Spontaneously Generated Funds

Funds generated if a liability account increases spontaneously (automatically) as sales increase. An increase in a liability account is a source of funds; thus, funds have been generated. Two examples of spontaneous liability accounts are accounts payable and accrued wages. Note that notes payable, although a current liability account, is not a spontaneous source of funds since an increase in notes payable requires a specific action between the firm and a creditor.

AFN Formula

Additional Funds Needed formula, a financial tool used to estimate the additional amount of financing a firm will require in the future.

Forecasting Method

Techniques used to predict future aspects of a business or the economy, from sales to macroeconomic trends.