The Process of Eliminating Unnecessary Levels of Management, and Thus

question 46

Multiple Choice

The process of eliminating unnecessary levels of management, and thus reducing the number of staff personnel and supervisors, is:

• A) decentralization.
• B) delegation.
• C) downsizing.
• D) partnering.

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, used for reinvestment in the business or to pay down debt.

After-Tax Cost

The actual cost of an investment or loan after taking into account the effects of taxation on its returns or costs.

Semi-Annual Coupon Rate

The interest rate on a bond that pays out interest twice a year.

Corporate Marginal Tax Rate

The tax rate that a corporation pays on its last dollar of taxable income, which can impact corporate investment decisions and strategies.