Which of the Following Actions Can Extinguish Risk Taking and Innovation

question 77

Multiple Choice

Which of the following actions can extinguish risk taking and innovation?

• A) long tenure in management
• B) encouraging experimentation
• C) rewarding for the absence of failures rather than for the presence of successes
• D) using organic organizational structures
• E) using an organizational structure that scores low on vertical differentiation, formalization, and centralization

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Definitions:

Allowance Method

The Allowance Method is an accounting technique that estimates and accounts for doubtful accounts, reducing the accounts receivable to its net realizable value.

Going Concern Assumption

An accounting principle assuming that an entity will continue to operate for the foreseeable future.

Direct Method

An approach to preparing the cash flow statement where actual cash flows from operating activities are listed.

Lower of Cost

An accounting rule where inventory is recorded at the lower of either its acquisition cost or market value at reporting time.