Tom, the Head of Human Resources, Is Working on an Important

question 35

Multiple Choice

 Tom, the head of human resources, is working on an important project for which he develops a team of five middle-level managers, each coming from a different department, including finance, IT, marketing, logistics, and production. The five managers will be reporting to Tom, who heads the team, and will coordinate among themselves to complete the project on time. This scenario shows that

• A) the managers belong to a functional team.
• B) Tom has formed a horizontal team.
• C) Tom has formed a geographically distributed team.
• D) the managers belong to a self-directed team.

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Definitions:

Consolidated Financial Statements

Financial statements that show the financial results and position of a parent company and its subsidiaries as if they were a single entity.

Wholly Owned Subsidiary

A firm entirely possessed by another corporation, known as the parent company, holding all of its share capital.

Non-Controlling Interest

A ownership stake in a corporation where the holding gives the investor less than 50% voting power.

Intercompany Profits

Profits derived from transactions between companies within the same group, which may need to be eliminated in consolidated financial statements.