When Management Realizes That Its Current Practices Are No Longer

question 74

Multiple Choice

When management realizes that its current practices are no longer appropriate and that the company must break out of its present mold by doing things differently, this is known as the ________ stage of motivating change.

• A)mobilizing
• B)stabilizing
• C)unfreezing
• D)moving
• E)refreezing

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

New Bonds

Securities that have been recently issued, representing loans from investors to issuers such as corporations or governments with a commitment to pay interest and return principal at specified dates.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.

Average Collection Period

The average number of days it takes for a business to receive payment from its customers for invoices issued.