The Simple Structure Is Most Widely Practiced in Small Businesses

question 66

Multiple Choice

The simple structure is most widely practiced in small businesses in which ________.

• A) the owner also manages the company
• B) management is limited to one individual
• C) managers have a high degree of influence with the company's owner
• D) managers are hired directly by the company's owner
• E) training budgets are limited

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Definitions:

Useful Life

The expected period over which a fixed asset is anticipated to be usable by the company.

Limousine

A luxury vehicle driven by a chauffeur, often elongated in form, used for special occasions or services.

Discount Rate

The rate of interest applied to discount future cash flows back to their current value, commonly employed in evaluating investments and planning for capital expenditures.

Salvage Value

The approximated financial return of an asset at the termination of its usefulness.