Pat, owner of Pat's Welding, LLC, would like to let someone else run the day to day operations while he continues to draw an income from the business. Because the business is an LLC, Pat will not have to be concerned about:
A. a reduction in the value of the company.
B. seller financing.
C. paying a brokerage fee.
D. double taxation on his income.
Answer: D
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The chapter describes a process leaders can use to draft a theme for their company–a unique service proposition. What are some questions that should be asked? What does the wording of a good service proposition look like?
What will be an ideal response?
Describe the direct selling channel along with pros and cons of the direct selling model.
What will be an ideal response?
Ashlyn focuses her energy at her car manufacturing company on assessing market fluctuations and shaping the goals of the organization for the future. She communicates well with her staff and enjoys the social aspect of work with the people around her. She leaves the details and daily operations primarily to other capable staff in the organization. Applying Katz’s skills model, at what level of management is Ashlyn?
A. top management B. middle management C. supervisory management D. low-level management
Safari Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown here:
Which of the following statements would be the most meaningful interpretation of this data?
A) The Boat Division's performance is better than that of the Trailer Division because it has higher assets.
B) The Boat Division uses its assets less efficiently than the Trailer Division does because it has a lower return on investment.
C) The Boat Division shows a more efficient use of assets than the Trailer Division because it has a higher operating income.
D) The Boat Division is financially more successful than the Trailer Division because it shows an increase in assets.