A Study by the Department of Labor's Glass Ceiling Institute

question 44

Multiple Choice

A study by the Department of Labor's Glass Ceiling Institute showed that

• A) the stock performance of firms that were high performers on diversity-related goals was over twice as high as that of other firms.
• B) companies with diverse work teams are more likely to succumb to groupthink.
• C) the cohesiveness among employees was significantly high in organizations that had a diverse workforce.
• D) companies with the highest percentage of women among senior managers had a significantly lower return to shareholders than companies with the lowest percentage.
• E) organizations with a diverse workforce lack flexibility and creativity when compared to other firms.

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Definitions:

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and procedures established for accounting and financial reporting, aimed at ensuring consistency and transparency.

Factoring

A financial transaction in which a business sells its accounts receivable (invoices) to a third party (factor) at a discount, to obtain immediate cash.

Direct Write-Off Method

An accounting method where bad debts are written off as an expense only when they are deemed to be uncollectable.

Bad Debt Expense

The estimated amount of credit sales that a company does not expect to collect due to customer's inability to fulfill payment obligations.