What Is a Strength of a Simple Structure

question 72

Multiple Choice

What is a strength of a simple structure?

• A)Employees are grouped with others who have similar tasks.
• B)Power and authority are widely distributed.
• C)Accountability is clear.
• D)There are cost-saving advantages from specialization.

Understand and calculate net cash flow from financing activities.

Comprehend the structure and elements of the balance sheet equation.

Analyze and determine net cash flow from investing activities based on changes in cash balance and cash flows from other activities.

Understand the purpose and classifications of the cash flow statement.

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Definitions:

Times Interest Earned

A financial ratio that measures a company’s ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Interest Payments

The amount paid by a borrower to a lender over a period of time for the use of borrowed money, typically expressed as an annual percentage rate.

Earnings Decrease

This term refers to a reduction in a company’s net income or earnings per share (EPS) in comparison to a previous period, indicating a decline in profitability.

Industry Averages

Statistical measures that represent the average or typical performance within a particular industry or sector.