Steve,an Owner of IT Services,realized That Because Customers Have So

question 111

True/False

Steve,an owner of IT Services,realized that because customers have so many low- or no-cost options available for training,offering training for Microsoft applications was not in huge demand.Therefore,Steve and his partner made a decision to change the original direction of the company and focus more on computer sales and repair.Steve is an example of how managers need to think and act as if their organization is an unfinished prototype that won't be ruined by dangerous new ideas or is impossible to change.

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Definitions:

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common shareholders.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its owners as dividends.

Journal Entries

The recordings of financial transactions in a ledger, marking the first step in the accounting cycle.

Year-End Balance

The financial position of an account at the end of the fiscal year after all debits and credits are taken into account.