The Lower the Level of Management

question 48

Multiple Choice

The lower the level of management:

• A) The wider the manager's span of management.
• B) The less frequently the manager needs to make decisions.
• C) The narrower the manager's span of management.
• D) The higher the manager's authority.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations with its operating income.

Debt-To-Equity Ratio

An evaluation measuring how shareholder equity contrasts with debt in the economic arrangement to finance a company's assets.

Equity Multiplier

A ratio of financial leverage which quantifies the fraction of a company's assets funded by the equity of its shareholders.

Net Profit Margin

A financial ratio that shows the percentage of net income to revenue, indicating the efficiency at which a company converts sales into net profit.