Scott Is Looking at a Chart Showing the Company's Organization

question 22

Multiple Choice

Scott is looking at a chart showing the company's organization structure. He notices that there is a solid line connecting Judy and Charles to Kara. This means that

• A) all reports created by Judy and Charles must be sent to Kara.
• B) the product flows from Judy and Charles to Kara.
• C) there is a direct telephone line between Judy and Charles and Kara.
• D) Kara has more seniority than Judy or Charles.
• E) Judy and Charles both report to Kara.

---

Definitions:

Loan Covenants

Clauses in a loan agreement that require the borrower to fulfill certain conditions or restricts certain activities to protect the lender.

Operating Lease

A lease agreement that allows the use of an asset but does not convey rights of ownership to the lessee; expenses are typically reported as operating expenses in the income statement.

Operating Lease

A lease agreement allowing a lessee to use an asset temporarily without ownership, typically involving regular payments for a short to medium term.

Liability

Financial obligations or debts that a company or an individual owes to others, which are expected to be settled in the future.