Which of the Following Does Elliot Jacques Think Is Necessary

question 30

Multiple Choice

Which of the following does Elliot Jacques think is necessary to make hierarchy work?

• A) the manager needs to be able to veto the hiring of sub-standard employees
• B) the manager needs the right to make work assignments
• C) the manager needs to be able to remove nonfunctional employees
• D) Jacques thought that all of the above were necessary

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Definitions:

External Equity

Refers to funds raised through issuing shares of stock to outside investors, as opposed to internal financing through retained earnings.

Required Rate

The minimum return an investor expects to achieve from an investment, considering its risk level.

External Equity

Funds raised through the sale of company shares in the capital markets, as opposed to internal financing through retained earnings.

Retaining Earnings

The portion of net income that is not distributed to shareholders but is kept by the company to be reinvested in its core business or to pay debt.