When the People Managing Diversified Product Lines in a Functionally

question 24

Multiple Choice

When the people managing diversified product lines in a functionally structured corporation need more decision-making freedom than top management is willing to delegate to them, this type of crisis is called

• A) a crisis of autonomy.
• B) a crisis of confidence.
• C) a crisis of clarity.
• D) a crisis of differentiation.
• E) a crisis of leadership.

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Definitions:

Cost Of Goods Sold

The immediate expenses linked to the manufacturing of goods a company sells, encompassing costs for materials and labor.

Current Assets

Short-term assets that a company owns, which are expected to be converted into cash within one year, such as inventory, cash, and accounts receivable.

Average Collection Period

A financial metric that measures the average number of days it takes a company to collect payments from its credit sales.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as machinery, buildings, and land.