The Principle of _____ States That Top Managers Should Always

question 15

Multiple Choice

The principle of _____ states that top managers should always construct a hierarchy with the fewest levels of authority necessary to efficiently and effectively use organizational resources.

• A)minimum chain of command
• B)unity of command
• C)unity of direction
• D)centralization
• E)dual command

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Definitions:

Long-Term Debt

Debt obligations that are due to be paid back over a period longer than one year, used for significant investments and capital improvements.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers and creditors.

Cost Of Goods Sold

The direct financial outlays for creating goods sold by a company, covering materials and labor.

Cash Cycle

The time it takes for a company to convert its investments in inventory back into cash, encompassing the entire sales and payments process.