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The president of Advanced Systems Corp. wants the company to have a strong organizational culture around a specific set of values. As a vice-president, you are concerned that the president may be trying to strengthen the culture too much thereby creating a corporate cult. Describe three potential problems with having an organizational culture that is too strong.
Straight-line Depreciation
A method of allocating the cost of a tangible fixed asset over its useful life in equal annual installments.
Net Income
The total profit of a company after all expenses and taxes have been deducted from total revenue.
Average Accounting Return
The ratio of the average net income that an investment generates to the average book value of the investment over its life.
Salvage Value
The estimated residual value of an asset after it has been fully depreciated and is no longer in use.
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