In a Large Company, Who Is Most Responsible for Devising

question 82

Multiple Choice

In a large company, who is most responsible for devising the corporate strategy?

• A) the CEO of the company
• B) the lower-level employees in the company
• C) the head of the production department in the company
• D) the human resource manager in the company

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Definitions:

Retention Ratio

The proportion of a company's net income that is retained rather than paid out as dividends, indicating reinvestment back into the company.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets.

Internal Growth Rate

The maximum rate at which a company can expand using only internal financing without resorting to borrowing or selling equity.

Dividend Payout Ratio

The fraction of earnings a company pays out to its shareholders as dividends, represented as a percentage of its net income.