The Type of Thinking That Occurs When Leaders Act to Optimize

question 20

Multiple Choice

The type of thinking that occurs when leaders act to optimize their part of the organization at the expense of suboptimizing the organization's overall effectiveness is known as

• A)Systems thinking
• B)Reframing
• C)Resistance
• D)Siloed thinking

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Definitions:

Bad Debts Expense

An expense reported on the income statement, representing the amount of accounts receivable that is not expected to be collected.

Accounts Receivable Turnover

A measure of how efficiently a company collects cash from credit sales, calculated as sales divided by the average accounts receivable.

Net Sales

The revenue generated from the sale of goods and services, after deducting returns, allowances for damaged goods, and discounts.

Allowance for Doubtful Accounts

A contra asset account that represents an estimate of the receivables that may not be collected, reducing the net value of accounts receivable.