D&B Inc Conducted a Review of Its Organizational Practices and Concluded

question 11

Multiple Choice

D&B Inc. conducted a review of its organizational practices and concluded that changes to the current system would result in increased efficiency. The company proposed a change in work timings and remuneration policies and implemented it for a trial period. When the employees were surveyed by their managers to discover their reaction to the changes, most employees noted that the new system boosted productivity, though a few reported that accommodating to the new system was difficult. However, management decided to go ahead and implement the new system. The actions of the management can be explained by Fayol's principle of ________.

• A) unity of command and direction
• B) lowering the importance of the subordinate role
• C) subordination of the individual to the general interest
• D) specialization of work
• E) esprit de corps

Identify sunk costs and their irrelevance to future financial decisions.

Calculate the financial impact of operational and staffing changes on project cash flows.

Assess the benefits of depreciation tax shields on a project's cash flows.

Understand the relevance of incremental cash flows in capital budgeting.

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Definitions:

Forcing Conflict-Management Style

A direct and assertive approach to dealing with conflicts, where one tries to win the situation at the potential expense of others.

Solution

A means of solving a problem or dealing with a challenging situation.

Problem

A situation, task, or issue that needs resolution or overcoming, which may arise in various contexts such as work, social interactions, or technology.

Controversy

A prolonged public disagreement or heated discussion, often involving differing opinions or viewpoints.