Colin Believes His Organization Could Be More Profitable If It

question 56

Multiple Choice

Colin believes his organization could be more profitable if it could respond to customers more quickly so he has decided to remove some management layers and increase the remaining managers' span of control. These would be considered changes in ________.

• A) structural design
• B) structural process
• C) degree of centralization
• D) structural components

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Definitions:

Debt-to-equity Ratio

A financial measure that reflects the balance of debt and equity used in funding a company's assets.

Receivable Turnover

A financial metric that measures how many times a company can turn its accounts receivable into cash during a period.

Inventory Turnover

A financial metric that measures how many times a company has sold and replaced its inventory over a certain period of time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets, calculated as current assets divided by current liabilities.