You Are the CEO of Achilles Incorporation

question 40

Multiple Choice

You are the CEO of Achilles Incorporation. You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________.

• A) matrix organization
• B) virtual organization
• C) highly centralized organization
• D) highly formalized organization
• E) bureaucracy

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Definitions:

Certificate of Deposit

A time deposit at a bank or financial institution that offers a fixed interest rate over a specified period.

Capital Acquisitions Ratio

A measure of a company’s ability to finance its investment in fixed assets through net income, indicating how much of the company’s capital is being acquired through profits.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest are deducted from total revenue.

Cash Investment

Funds that are invested in assets that can be quickly turned into cash, or the act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.