In Less Than Two Years,Eric Is Promoted to a Management

question 44

Multiple Choice

In less than two years,Eric is promoted to a management position with five subordinates reporting directly to him.What about Eric's position has changed?

• A)unity of command
• B)chain of authority
• C)increased formalization
• D)hierarchy of responsibility
• E)span of control

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Definitions:

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically represented as an annual percentage of the loan principal.

Unrealized Gain

An increase in the value of an asset that has not been sold yet; hence, the gain is not reflected in the income statement.

Stock Investment

The purchase of shares in a company with the expectation of earning a return in the form of dividends or capital gains.

Dividend

A portion of a company's earnings distributed to its shareholders as a return on their investment.