Which of the Following Is Most Likely to Be a Characteristic

question 93

Multiple Choice

Which of the following is most likely to be a characteristic of an organization pursuing a cost-minimization strategy?

• A) lack of tight control
• B) wide span of control
• C) low work specialization
• D) high centralization
• E) low formalization

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Definitions:

Component Cost of Debt

The effective rate that a company pays on its current debt, incorporating tax effects.

Preferred Shares

Preferred Shares are a type of stock that grant holders preferential treatment over common stockholders in terms of dividends and assets during liquidation, but usually do not carry voting rights.

Rate of Return

The increase or decrease in the value of an investment, shown as a percentage of the original amount invested, over a given timeframe.

Floatation Costs

Flotation costs are the expenses incurred by a company in issuing new securities, including fees and commissions paid to underwriters, legal fees, and registration fees.