Which of the Following Is True of Line Management

question 7

Multiple Choice

Which of the following is true of line management?

• A) It is directly responsible for achieving the goals of the organization.
• B) It is responsible of management accounting functions.
• C) It provides advice, support, and assistance to staff management.
• D) It only includes the top level management.

Understand the concepts of financial leverage and how it affects a firm's capital structure.

Comprehend the principles of financial statements preparation and their interconnections.

Differentiate between book values and market values and understand their significance to financial managers.

Understand the principles of taxation and their impact on business decisions and financial performance.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition without surplus or shortage.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the amount sellers are willing to sell equals the amount buyers are willing to buy.

Supply Curve Shift

A change in the position of the supply curve, either to the left or right, indicating a change in the quantity supplied at every price level, due to factors other than price.

Downward-Sloping Demand

The economic principle that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase.