Quinn Has Landed a Management Position with a Pioneering New

question 15

Multiple Choice

Quinn has landed a management position with a pioneering new small business after many years of working as a regional manager for a nationally known nonprofit. As Quinn starts her new job, she is likely to find that

• A) due to the significant differences in large and small firms, her previous experience will be of little value in her new position.
• B) the principles of management are much the same at large and small firms.
• C) nonprofit organizations are motivated by their desire to help people and so financial management is of little concern.
• D) planning is more important to a nonprofit organization and less important to a small business so she will need to adjust the time she spends on the planning function.

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Definitions:

Inventory

The goods and materials that a business holds for the ultimate goal of resale or use in production.

Stockholders' Equity

The ownership share of shareholders in a corporation, calculated as the value of assets minus liabilities.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company for reinvestment.

Assets

Economic resources owned by a business or company that are expected to provide future benefits or value.