Organizations Have Built-In Mechanisms-Like Their Selection Processes and Formalized Regulations-To

question 101

Multiple Choice

Organizations have built-in mechanisms-like their selection processes and formalized regulations-to produce stability. When an organization is confronted with change, these mechanisms act as a counterbalance to sustain stability. Which of the following organizational sources of resistance to change is represented by these mechanisms?

• A) group inertia
• B) selective information processing
• C) employee-orientation
• D) structural inertia
• E) product-orientation

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Definitions:

Post-Closing Trial Balance

A list of all accounts and their balances after the closing entries have been made, ensuring that debits equal credits in preparation for the next accounting period.

Temporary Accounts

Accounts that are closed at the end of the accounting year, including income, expense, and withdrawal accounts, to prepare the company for the new fiscal year.

Permanent Accounts

Accounts that carry their ending balances over into the next accounting period, typically including assets, liabilities, and equity accounts.

Current Ratio

This financial indicator quantifies a corporation's ability to satisfy its short-term liabilities with its current assets, based on a comparison calculated by dividing the former by the latter.