Which of the Following Is the Best Example of a Succession

question 87

Multiple Choice

Which of the following is the best example of a succession plan?

• A) Paul is being trained to provide coverage in Jason's department so he can provide support to Jason's employees when he goes on vacation.
• B) Lauren was demoted from her position as Menswear Department Manager and Eric, her Assistant Manager, was placed in her role until a new manager is hired.
• C) Bob, a new employee, has been attending all of the management training programs offered by his organization because he has hopes of being selected for a management position someday and eventually running his department.
• D) Dara, the VP of Distribution, has been mentoring Joseph, the Distribution Services Manager, for the past three years because she is planning to retire at the end of this year and Joseph will be taking over for her.
• E) Steven was transferred from a branch office of the bank to the main office so that he could learn more about the new services that are being offered. He will then return to his branch office after three months of training and teach his employees there about the new services.

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Definitions:

Cash Collections

Cash collections refer to the process of gathering all cash generated from sales, services, or receivables by a business during a specific period.

Minimum Cash Balance

Minimum cash balance is the lowest amount of cash a company aims to maintain in its accounts to ensure operational liquidity.

Average Collection Period

Measures the time, on average, it takes for a company to receive payments owed by its customers, indicating the efficiency of its credit and collection policies.

Cumulative Surplus

The total accumulated amount of profits, after all expenses and dividends are paid, that a company has at its disposal for reinvestment or distribution.