A Benefit of the Informal Organization That Is Seldom Recognized

question 46

True/False

A benefit of the informal organization that is seldom recognized is that its presence encourages managers to plan and act more carefully than they would otherwise.

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Definitions:

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for changes in balance sheet items to calculate cash flow from operating activities.

Net Income

Represents a company's earnings after all expenses, charges, and taxes have been subtracted from total revenue, reflecting the financial health of the company.

Operations

Refers to the day-to-day activities necessary for a business to function, encompassing production, sales, and distribution.

Net Operating Cash

The amount of cash generated by the regular operating activities of a business within a specific period.