A Company Is Planning to Revise Its Organizational Structure and One

question 2

Multiple Choice

A company is planning to revise its organizational structure and one of the managers suggests increasing employee empowerment by giving them more decision-making authority. Which of the following, if true, would support his stand?

• A) The firm's employees are reluctant to disrupt the status quo and are apprehensive about any change in responsibility.
• B) The firm's employees are used to an authoritative structure and clearly defined job-roles.
• C) The company's front-line workers have first-hand knowledge of what can and cannot be done.
• D) The company is trying to recover from an economic downturn that caused significant losses which necessitated downsizing.
• E) The company culture revolves around the founder who is charismatic and in-charge kind of CEO.

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Definitions:

Interest Rates

The amount charged, expressed as a percentage, by a lender to a borrower for the use of assets.

Nominal Interest Rates

Interest rates that have not been adjusted for inflation, reflecting the rate of interest paid by borrowers or earned by investors.

Pure Discount Securities

Financial instruments that are sold at a discount from their face value and pay no interest until maturity, such as zero-coupon bonds.

Clean Price

The price of a bond excluding any interest that has accrued since issue or during the last coupon payment.