The Senior Management of a Firm Recognizes the Potential of the Human

question 21

Multiple Choice

The senior management of a firm recognizes the potential of the human resource (HR) department:

• A)if the HR department is listed as a line department instead of a staff department on the organization chart.
• B)if the HR department is consulted only when legal problems arise.
• C)if the HR department reports to the CEO of the firm.
• D)if the HR department is spatially close to the senior management.

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Definitions:

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Dividend Announcement

is a public declaration by a company of its intention to pay out earnings to its shareholders in the form of dividends.

Signaling Effect

A phenomenon where decisions made by a company send signals to the market about its future prospects or the value of its stock.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests in the company.