Gordon Is a New Divisional Manager at AskSocrates

question 103

Multiple Choice

Gordon is a new divisional manager at AskSocrates.com. In reorganizing his division, he must make some decisions regarding the span of control for management within his division.
-The question of span of control determines ________.

• A) the employee grievance policy of the organization
• B) the number of levels and managers in an organization
• C) where decisions are made
• D) how jobs will be grouped
• E) how employees will be compensated

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Definitions:

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, usually expressed as a percentage.

Profit Margin

A measure of profitability calculated as net income divided by revenue.

Equity Financing

The method of raising capital through the sale of shares in a company, giving investors ownership interests.

Current Liabilities

Obligations or debts a company expects to settle within one fiscal year or its operating cycle, whichever is longer.