Consistent with the Principles of Adam Smith and Henri Fayol

question 52

Multiple Choice

Consistent with the principles of Adam Smith and Henri Fayol, differentiation has traditionally been accomplished by

• A)Paying individuals different amounts based on their expertise
• B)Creating specialized jobs and work units that are then organized hierarchically
• C)Hiring individuals who have a variety of different backgrounds
• D)Increasing the efficiency of work processes
• E)Subordinating individual interests to the interests of the organization

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Definitions:

Loan Made

Money that is lent to another party in exchange for future repayment of the loan value amount, plus interest.

Indirect Method

An accounting technique used to prepare the cash flow statement, where increases in non-cash current assets are subtracted from, and increases in current liabilities are added to, net income to arrive at net cash flow from operating activities.

Net Cash

The difference between all cash inflows and outflows within a given period, often used to assess financial health.

Operating Activities

Day-to-day actions and transactions that are directly related to running a business, such as buying, selling, and production.