Rajendra's Company Uses Open Book Management, Where Employees Can Visit

question 43

Multiple Choice

Rajendra's company uses open book management, where employees can visit the company intranet and look up financial performance, design standards, and photos of co-workers. This sharing of information will ______ in employee empowerment and will have ______ on product quality.

• A) result; no impact
• B) result; a positive impact
• C) not result; no impact
• D) not result; a positive impact

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Definitions:

Minimum Cash Balance

The smallest amount of cash that a company seeks to maintain in its accounts to ensure financial stability and operational efficiency.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit, yet to be paid.

Accounts Receivable Period

The average number of days it takes for a business to collect payments owed by its customers.

Credit Sales

Sales made by a business for which payment is received at a later date, extending credit to the buyer.