You Are Writing a Proposal to Restructure Your Department's Organizational

question 28

Multiple Choice

You are writing a proposal to restructure your department's organizational chart. Your manager was a member of the committee that originally set up the department's current structure. Which purpose statement would be best for a proposal to your manager?

• A) The purpose of this proposal is to show how we can reorganize our department to improve our efficiency while keeping intact the values that have allowed us to succeed to this point.
• B) The purpose of this proposal is to show how to solve all of our productivity problems and remove all the barriers to effective communication.
• C) The purpose of this proposal is to show why it's time for "out with the old and in with the new."
• D) The purpose of this proposal is to explain why we have no choice but to scrap our ineffective organizational structure.

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Definitions:

Representational Faithfulness

The extent to which financial statements accurately reflect the economic phenomena they purport to represent.

Verifiability

A concept in accounting referring to the ability to ensure that different knowledgeable and independent observers can agree that a particular representation of financial information is faithfully depicted.

Reliable Information

Information that is accurately and precisely presented, free from significant error or bias, making it dependable for making financial decisions.

Diversified Group

A group of companies or entities operating across different sectors or industries, reducing risk through diversification.