Which of the Following Is a Characteristic of a Permanent

question 12

Multiple Choice

Which of the following is a characteristic of a Permanent Fund?

• A)both the corpus of the fund and its earnings must be kept intact permanently.
• B)permanent funds are created to support programs that benefit other governmental units.
• C)earnings of a permanent fund are used to support programs that benefit the government or its citizens.
• D)permanent Funds are established when a government receives a bequest without a legal trust agreement.

Comprehend the challenges and disadvantages associated with geographic and network designs.

Recognize the ethical implications in organizational decisions and structure, exemplified by cases like Enron.

Understand the principles of span of control within an organizational hierarchy.

Appreciate the role of functional design in fostering skill specialization and technical decision-making.

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Definitions:

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking down the analysis to operating, investing, and financing activities.

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and distribution, which are reflected in its cash flow.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet items to arrive at cash flow from operating activities.

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.