The Upside-Down Pyramid View of Organizations Shows

question 84

Multiple Choice

The upside-down pyramid view of organizations shows:

• A) managers at the top being in charge of the overall operations of the organization.
• B) customers at the top being served by workers who are supported by managers.
• C) that board of directors can hold top management accountable for organizational performance.
• D) that operating and frontline workers are at the bottom of the pyramid followed by the middle managers.
• E) that the primary job of top executives is to preserve the resources of the company.

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Definitions:

Payback Period

The length of time required to recover the initial investment in a project, without accounting for the time value of money.

Gross Revenues

The total sales revenue of a company without any deductions.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.

Cash Inflows

The total amount of money being transferred into a business, usually from operating, investing, and financing activities.