In 1976, the Cost of a Movie Was $4

question 104

Multiple Choice

In 1976, the cost of a movie was $4. In 2012, it's $9. If the CPI for 1976 is 56, and 228 for 2012, to find the real 2012 value of a 1976 movie, we would multiply its nominal value in 1976 by the ratio of:

• A) (56/228).
• B) (228/56).
• C) (9/5).
• D) (5/9).

Understand the role of formal and informal structures within organizations.

Explain the concept and impact of span of control on organizational efficiency.

Determine the importance of a clear line of authority and chain of command in organizations.

Identify trends in organizational design, including the shift towards flatter structures and decentralization.

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Definitions:

Stock Dividend

A dividend payment to shareholders in the form of additional shares rather than cash.

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of the shareholders.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific moment in time, showing assets, liabilities, and shareholders' equity.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of cash.