You Assign Your Students a Project That Involves Developing a Business

question 23

Multiple Choice

You assign your students a project that involves developing a business plan for a retail chain. The retail chain will have 1000 employees and will serve customers both locally and internationally via a storefront and an Internet catalog. Which of the following organizational designs is least likely to be suitable for this retail store?

• A) matrix
• B) virtual
• C) bureaucracy
• D) team
• E) simple

---

Definitions:

Net Cash

Describes the amount of cash remaining after all cash expenditures, or disbursements, are subtracted from the cash receipts during a given period.

Indirect Method

A method used in accounting to calculate cash flows from operating activities, adjusting net income by changes in non-cash accounts.

Direct Method

A technique used in cash flow statements to present cash activities directly related to operating activities.

Investing Adjustments

Adjustments made in the accounting records related to investments in securities or fixed assets to reflect their fair values as of the financial statement date.