When the Length of the Financing Is Directly Related to the Life

question 42

Multiple Choice

When the length of the financing is directly related to the life of the asset being financed, the firm is said to follow a:

• A)Policy of maturity matching
• B)Restrictive financing strategy
• C)Matched depreciation strategy
• D)Minimum working capital strategy

Analyze the implications of rewarding managers based on division revenues versus division profits.

Understand the consequences of managerial decisions on company-wide performance and inter-divisional relationships.

Evaluate the conditions under which a cost center might be a more appropriate organizational design choice than a profit center.

Grasp the complexities involved in the performance evaluation of profit center managers and the impact of discretion in decision-making.

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Definitions:

Personal Space

The distance someone wants between him- or herself and other people in ordinary, nonintimate interchanges.

Polychronic Culture

Culture in which people do several things at once.

Body Language

Non-verbal communication through physical behaviors, such as gestures, postures, and facial expressions.

Advanced Placement

A program offering college-level curriculum and exams to high school students, with the opportunity to earn college credit.