Which of the Following Illustrates the Management Practice of Gaining

question 23

Multiple Choice

Which of the following illustrates the management practice of gaining competitive advantage through people?

• A) The management of Mabette, a law firm, believes that it is best not to disclose the company's financial information to the employees of the organization.
• B) The board of directors of Naocomp, a software company, decides to launch its own research and development division by investing from the company's profits.
• C) Pentafth, an advertising agency, does not provide job security to its employees under the pretense that the fear of losing their jobs would cause the employees to perform well.
• D) Olagamp, a pharmaceutical company, recruits aggressively without enough screening so that it does not lose any talented job applicants in the process.

---

Definitions:

Common Stock Dividend Distributable

A liability account on the balance sheet representing a declaration of dividends by a company's board of directors that have not yet been paid out to shareholders.

Paid-in Capital

Funds received by a company in exchange for its stock, representing the equity capital contributed by shareholders.

Dividends Payable

A liability account on a company's balance sheet representing the amount of declared dividends that are to be paid out to shareholders.

Date of Declaration

The date on which a company's board of directors announces a dividend payment to shareholders.