Many profitable firms fail because of lack of cash.
Answer the following statement true (T) or false (F)
True
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Andri is involved in a group of workers who exhibit prejudices to the frontline employees. His company has developed a group to role play and discusses the differences between these two groups. While in the group, they are invited to share their perspectives. They are then shown productive ways to alleviate tensions without causing conflict. Andri’s company is engaging in which type of organizational development intervention?
A. task–technology B. people-focused C. sociotechnical system design D. quality of worklife
Which of the following is least associated with unilateral decision making?
a. reactive stakeholder strategy b. interactive stakeholder strategy c. proactive stakeholder strategy d. delegating stakeholder strategies
Which measurement scale indicates an order of preference but not the degree of preference among ranks?
a. Interval scale b. Ratio scale c. Nominal scale d. Ordinal scale
Two operationally similar companies, HD and LD, have identical amounts of assets, operating income (EBIT), tax rates, and business risk. Company HD, however, has a much higher debt ratio than LD. Company HD's return on invested capital (ROIC) exceeds its after-tax cost of debt, (1-T) rd. Which of the following statements is CORRECT?
A. Company HD has a higher times interest earned (TIE) ratio than Company LD. B. Company HD has a higher return on equity (ROE) than Company LD, and its risk, as measured by the standard deviation of ROE, is also higher than LD's. C. The two companies have the same ROE. D. Company HD's ROE would be higher if it had no debt. E. Company HD has a higher return on assets (ROA) than Company LD.