When an Organization Allows Divisional Managers to Be Responsible for Short-Term

question 74

Multiple Choice

When an organization allows divisional managers to be responsible for short-term loans and credit, the division's invested capital should be measured by

• A) total assets minus total liabilities.
• B) average total assets minus average current liabilities.
• C) average total assets minus average total liabilities.
• D) average total liabilities minus average current assets.
• E) average total liabilities minus total assets.

Understand the impact of technological advancements on business strategies.

Describe the significance of the natural environment in business decision-making.

Comprehend the process and importance of innovation in business.

Analyze the effects of generational cohorts on market trends and organizational strategies.

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Definitions:

Motion Study

An analysis technique aimed at improving work efficiency by breaking down tasks into their fundamental motions and eliminating those that are unnecessary.

Administrative Principles

Fundamental rules and guidelines related to the organization and management of businesses, focusing on efficiency and planning.

Contemporary Businesses

Modern business enterprises that operate in the current market environment, characterized by rapid technological advancements, globalization, and changing consumer preferences.

Functions of Management

The essential roles and activities managers engage in to achieve organizational goals, commonly identified as planning, organizing, leading, and controlling.