QUESTION Which of the following is NOT true about open book management? A) Employees are encouraged to suggest ways to improve the company’s performance. B) Employees directly review their managers’ on-the-job performance. C) Employees have access to the firm’s financial statements and other information about the company’s performance. D) Employees see how their performance affects […]
QUESTION Interest is A) the fee that a bank or other institution pays you for the use of your money. B) the fee that you pay a bank in order to use a personal or business checking account. C) the money you set aside in a savings account every time you get paid. D) the […]
QUESTION Which of the following is the most likely objection to open book management? A) Employees will feel disrespected by management if the company’s financial performance is poor. B) The company will be violating laws about keeping financial information confidential. C) The firm’s financial information will get into the hands of competitors. D) Employees will […]
QUESTION The fundamental accounting equation is Assets = Liabilities + Owners’ Equity. Indicate whether the statement is true or false ANSWER TRUE
QUESTION Open book management improves employees’ quality of life because A) it creates a work environment characterized by reduced stress. B) it ensures employees a steady paycheck. C) it enables employees to buy higher-quality goods and services. D) it frees employees from having to contribute ideas for improving the company’s performance. ANSWER A
QUESTION The “bottom line” is A) the lowest possible revenue a company can earn without having to declare bankruptcy. B) the final decision a CEO makes regarding whether to sell the company or divest a division. C) an accounting calculation that figures out a company’s financial performance based on net profit. D) an equation showing […]
QUESTION Which of the following is a well-stated business goal? A) “Strengthen our ability to manufacture products without error.” B) “Enhance morale and engagement throughout our workforce.” C) “Improve our ability to innovate new products and services.” D) “Increase revenues twofold by the end of the fiscal year.” ANSWER D
QUESTION Whenever your standard of living goes up, so does your quality of life. Indicate whether the statement is true or false ANSWER FALSE
QUESTION Net profit, when used alone, shows a company’s true financial health. Indicate whether the statement is true or false ANSWER FALSE
QUESTION A budget quantifies all of a company’s expected inflows and outflows of cash. Indicate whether the statement is true or false ANSWER TRUE
