When Employees Do Not See the Advantage of a Particular

question 96

Multiple Choice

When employees do not see the advantage of a particular change compared to current practices or do not recognize how such a change fits with the firm's strategy, the result is most likely resistance to change driven by

• A)surprise.
• B)timing.
• C)inertia.
• D)misunderstanding.
• E)self-interest.

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Definitions:

Statement Of Cash Flows

A financial statement showing the cash inflows and outflows for a business over a period of time, divided into operating, investing, and financing activities.

Repurchasing Capital Stock

A corporate action in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Negative Free Cash Flow

A situation where a company's cash outflows exceed its cash inflows during a specific period, indicating potential financial difficulties.

Free Cash Flow

The amount of cash generated by a company after accounting for operational expenses and capital expenditures.