A Simple Structure Is an Organizational Form in Which the Owner-Manager

question 81

True/False

A simple structure is an organizational form in which the owner-manager makes all major decisions directly and monitors all activities, while the staff merely serves as an extension of the manager's supervisory authority.

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Definitions:

Times Interest Earned

A metric to assess a company's ability to meet its debt obligations, calculated as earnings before interest and taxes divided by interest expense.

Balance Sheet

A ledger detailing the assets, liabilities, and equity of shareholders of an enterprise at a specific timeframe.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, including revenues, expenses, and profit or loss.

Gross Margin

The difference between sales revenue and the cost of goods sold, often expressed as a percentage of sales.