Which of the Following Is NOT a Common Trait of an Unhealthy

question 37

Multiple Choice

Which of the following is NOT a common trait of an unhealthy company culture?

• A) A politicized internal environment and empire-building managers who jealously guard their turf.
• B) Hostility to change and a wariness of people who champion new ways of doing things.
• C) An aversion to looking outside the company for best practices,new managerial approaches,and innovative ideas.
• D) An aversion to incentive compensation,failure to recruit the best and brightest employees,subpar support for employee training,overemphasis on working in teams,and low ethical standards.
• E) Overzealous pursuit of wealth and status on the part of key executives.

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Definitions:

Ratio Analysis

A technique of analyzing the strength of a company by forming (financial) ratios out of sets of numbers from the financial statements. Ratios are compared with the competition, recent history, and the firm’s plan to assess the quality of its performance.

Stable Company

Refers to a firm with consistent performance, low volatility in its stock price, and predictable financial returns, making it a less risky investment.

Growing Rapidly

A phase characterized by a significant increase in a company's revenue, profits, or size within a short period.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its operating income.