Which of the Following Statements BEST Describes the Managerial Hierarchy

question 125

Multiple Choice

Which of the following statements BEST describes the managerial hierarchy?

• A) The lower a manager,the more power he or she has.
• B) The amount of power decreases as you move up the managerial hierarchy.
• C) The number of employees decreases as you move down the managerial hierarchy.
• D) The managerial hierarchy is also called the management pyramid.

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Definitions:

Callable Preferred Stock

Callable preferred stock is a type of preferred share that gives the issuer the right to redeem the stock at a predetermined price after a specific date.

Cumulative Preferred Stock

A type of preferred stock that has a feature where missed dividend payments accumulate and must be paid out before dividends can be issued to other stock types.

Outstanding Shares

Represents the total shares of a corporation’s stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash.