Which of the Following Is NOT an Advantage of Group

question 71

Multiple Choice

Which of the following is NOT an advantage of group decision making?

• A)Managers can draw on the combined skills
• B)Managers can process more information
• C)Probability for successful implementation increases
• D)Groupthink can occur
• E)Managers improve their ability to generate alternatives

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Definitions:

Target Payout Ratio

A firm’s long-term desired dividend–earnings ratio.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Price Range

The spread between the lowest and highest prices at which a commodity or asset is traded over a certain period of time.

Compromise Dividend Policy

A strategy for distributing earnings to shareholders that seeks to balance between retaining earnings for reinvestment and paying dividends.