Cameron, a Financial Manager at Southeastern Bank, Always Attempts to Treat

question 244

Multiple Choice

Cameron, a financial manager at Southeastern Bank, always attempts to treat each subordinate with respect and fairness. Cameron's treatment of employees is an example of Fayol's principle of

• A) unity of command.
• B) equity.
• C) empowerment.
• D) order.

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Definitions:

Earnings Yield

The inverse of the price-to-earnings ratio, representing the earnings per share divided by the price per share.

P/E Ratio

The price-to-earnings ratio compares a company's share price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Dividend Payout Ratio

The fraction of net income a firm pays out to its shareholders in dividends, typically expressed as a percentage.

Interest Burden

Relates to the impact of interest expenses on a company's net income, indicating the portion of profits consumed by interest obligations.