When Developing an Organizational Chart, You Should

question 68

Multiple Choice

When developing an organizational chart, you should

• A) recommend dual titles for executives.
• B) use the title "president" for the top executive of the firm.
• C) make sure that the chief financial officer is not at the same level as the chief operating officer.
• D) have division presidents report to a chief operating officer.
• E) have employees report to more than one person in the chain of command.

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Definitions:

Cash Distribution

The payment of earnings or capital to the members, partners, or shareholders of a company or an organization.

Income and Loss Sharing

A method of partnership where profits and losses are distributed among partners according to their agreed-upon percentages or capital contributions.

Noncash Assets

Assets that cannot be easily converted into cash, such as real estate, equipment, and intellectual property.

Liquidated

The process of converting assets into cash or paying off liabilities in the process of closing or restructuring a business.