Because Sheer Size Makes It Difficult for Managers to Oversee

question 82

Multiple Choice

Because sheer size makes it difficult for managers to oversee operations and serve customers,most large companies are structured as _____ organizations.

• A)matrix
• B)divisional
• C)functional
• D)departmental

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Definitions:

Average Daily Operating Costs

The average amount spent by a business on its day-to-day operational activities, divided by the number of days in the period.

Times Interest Earned

A financial metric indicating how well a company can meet its interest obligations from earnings before interest and taxes.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Interest Expense

Over a span of time, the monetary burden borne by an entity due to borrowed capital.