Which of the Following Is Not a Disadvantage of Written

question 7

Multiple Choice

Which of the following is not a disadvantage of written and implied policies?​

• A)Personnel only follow policies to ingratiate themselves with executive management.
• B)Employees may view policies as a substitute for effective management.
• C)Policies are not a set of how-to instructions designed to provide specific answers for every business decision.
• D)Policy development can restrict innovation and flexibility.
• E)Policies are often difficult to communicate throughout large organizations.

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Definitions:

Market Values

The prevailing price for transactions involving assets or services in the open market.

Capital Structure

The mix of different forms of financing used by a company to fund its overall operations and growth, including debt and equity.

Floatation Expenses

The costs associated with issuing new securities in the market, including underwriting, legal, and registration fees.

Book Value

The net value of a company's assets found on its balance sheet, calculated by subtracting liabilities from the total assets.