One of the Main Ways That Culture Is Created and Maintained

question 99

Essay

One of the main ways that culture is created and maintained within an organization is for the founder to only hire and keep employees who think and feel the same as he/she does. Discuss both the pros and cons of this idea and offer an opinion as to why this system can be effective.

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Definitions:

Dividend Payable

The amount declared by a company’s board of directors to be distributed among shareholders at a set date in the future.

Residual Dividend Policy

A strategy where dividends are based on the earnings left over after all project capital needs are met.

Debt-Equity Ratio

The ratio that measures the relative proportion of shareholders' equity and debt used to finance a company's assets.

After-Tax Earnings

The amount of net income a firm has after all taxes have been paid, representing the company's profitability.