In an Organizational Transformation

question 75

Multiple Choice

In an organizational transformation:

• A)there are incremental changes to the ways things have always been done.
• B)the change may affect only one or a few of the functional areas of the business.
• C)there is always a sharp break with the past and every aspect of the business will probably change.
• D)there is a change in outlook,but rarely a change in procedures or investment in infrastructure.

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Definitions:

Convertible Preferred Stock

A type of preferred stock that gives the holder the right to convert their shares into a predetermined number of common stock shares, usually after a specific date.

Noncumulative Preferred Stock

Preferred shares that do not entitle the holder to claim dividends missed in the past if the company decides not to distribute dividends in a given year.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces the price per share, making the stock more accessible to investors.

Basic Earnings Per Share

A measure of a company's profitability that shows how much of its profits are allocated to each share of common stock.