Reducing Costs and Increasing Efficiency While Creating the Ever-Present Capacity

question 62

Multiple Choice

Reducing costs and increasing efficiency while creating the ever-present capacity for change is one of the prime objectives of:

• A) mechanistic organisation design.
• B) corporate social responsibility.
• C) process re-engineering.
• D) cultural management.
• E) bureaucracy.

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Definitions:

Collection Period

The average number of days required to collect receivables from customers.

Stock Dividend

Payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.

Cash Discounts

An incentive offered by sellers to buyers for early payment of invoices, aimed at encouraging prompt payment and improving cash flow.

Short-term Financial Policy

Pertains to strategies and decisions related to managing a company’s current assets and liabilities to ensure liquidity.