Adam Is a New Product Development Manager for Hello

question 93

Multiple Choice

Adam is a new product development manager for Hello.com, an Internet match-making service. He has only two employees reporting directly to him. From what you have read about organization charts, what do you know for sure?

• A)His subordinates enjoy greater autonomy than others.
• B)His subordinates take part in the decision-making process.
• C)He has a narrow span of control.
• D)His subordinates are not closely supervised.
• E)He is encountering low administrative costs.

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Definitions:

Cash-Generating Unit

The minimal distinguishable collection of assets that creates cash inflows primarily independent from the cash inflows of other assets or asset collections.

Impairment Loss

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.

Net Carrying Amount

The value of an asset recorded in a company's financial statement, which is the original cost minus accumulated depreciation and impairment losses.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the value of the business's reputation, brand, and other unquantifiable assets.