The Global Economy, Globalization, Rapid Technological Change, and the Increasing

question 92

Multiple Choice

The global economy, globalization, rapid technological change, and the increasing importance of knowledge are creating the need to:

• A) delegate strategic responsibilities to employees "closer to the action."
• B) split responsibilities between the CEO and the board of directors to minimize the possibility of corporate scandals triggered by unethical CEOs.
• C) re-centralize the responsibility for strategy to the CEO.
• D) expand the strategic responsibilities to all organizational stakeholders.

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Definitions:

Company

A business organization founded by a group of individuals dedicated to pursuing and administering a commercial or industrial venture.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Company

A business entity established by a collection of people to conduct and manage a commercial venture.

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.