Which of the Following Statements Best Describes the "Iceberg Principle

question 88

Multiple Choice

Which of the following statements best describes the "iceberg principle"?

• A) Problems in one area may be offset by good performances in other areas-and thus the problems may not be visible on the surface.
• B) Ten percent of the items in inventory usually account for 80 percent of the sales.
• C) Within a company's sales force there are usually one or two sales reps who don't carry their weight.
• D) Many sales reps do not make their quotas because they ignore certain clients.
• E) Airfreight is less risky than shipping by boat.

Understand the significance of common stock metrics such as market price per share, book value per share, and price-earnings ratio.

Analyze a company's financial structure through its total stockholders' equity and total liabilities and equity.

Evaluate a company's efficiency through turnover ratios like accounts receivable turnover, inventory turnover, and analyze the implications of these ratios.

Assess the company's credit management efficiency through the average collection period and the average sale period calculations.

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Definitions:

Empirical Studies

are investigations grounded in observation or experience rather than theory or pure logic.

Effective Leadership

The ability to guide, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members.

Role Expectations

The beliefs about the behaviors and actions expected from a person occupying a particular role.

Role Conflicts

Situations where there are contradictory expectations related to a single role or between multiple roles held by an individual.