Which of the Following Actions Represents the Best Way to Improve

question 37

Multiple Choice

Which of the following actions represents the best way to improve a company's finances in the short term?

• A) Raise selling prices by 10%.
• B) Allow customers 5 days longer to pay.
• C) Pay vendors 5 days earlier than before.
• D) Decrease union wages by 3%.
• E) Carry less 5% less inventory.

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Definitions:

Decentralized

Refers to the dispersion or distribution of functions and powers away from a central location or authority.

Decision Rights

The authority granted to individuals or groups to make choices regarding the allocation of resources, execution of tasks, or direction of strategies.

Relevant Information

Data or facts that can influence the outcome of a decision and should be considered when making choices.

Organizational Design

The process of structuring an organization in terms of its workflow, systems, and processes to achieve its objectives and maximize efficiency and effectiveness.