Which of the Following Is True of Downward Flow of Information

question 133

Multiple Choice

Which of the following is true of downward flow of information?

• A)The middle level of the organization develops strategies.
• B)The lower levels of the organization convert the tactics into strategies.
• C)The upper levels of the organization deal with the operational details.
• D)The middle levels of an organization convert those strategies into tactics.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and the potential for dividends, representing a claim on a portion of the company's assets and earnings.

Fair Value

The estimated market value of an asset, based on current prices in an open and competitive market.

Stock Option Plan

A scheme offered by a company to its employees, allowing them to purchase company shares at a predetermined price after a set period.

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.