When Developing an Organizational Chart, You Should

question 57

Multiple Choice

When developing an organizational chart, you should

• A) recommend dual titles for executives.
• B) use the title "president" for the top person.
• C) make sure that the chief financial officer is not at the same level as the chief operating officer.
• D) have division presidents report to a chief operating officer.
• E) have the controller or treasurer report directly to the president.

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Definitions:

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out to shareholders.

Low-investment-rate Plan

A strategy or plan offering lower returns on investments, typically associated with lower risk or short-term investment horizons.

Dividends

Payments made by a corporation to its shareholder members from the company‘s earnings.

DDM

The Dividend Discount Model, an investment valuation tool used to estimate the value of a company's stock by considering expected dividends and discounting them back to present value.