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4001

The principle of span of control stipulates that?

  • A. The number of employees reporting to one superior should be kept to a workable maximum
  • B. An employee should report to only one superior
  • C. Managers must demand accountability from their subordinates
  • D. Resources have to be economized within the various divisions
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4002

The main advantage of a sole trader is the freedom to?

  • A. employ anyone he likes
  • B. take quick decision
  • C. seek advise from any source
  • D. plough all the profits
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4003

The major objective of corporate mergers is to?

  • A. minimize the effect of taxation
  • B. increase financial advantage
  • C. enhance economies of sale
  • D. facilitate profit maximization
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4004

A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues of the firm's common stock is the

  • A. pre-emptive right
  • B. over-subscription right
  • C. ex-dividend right
  • D. shareholders right
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4005

The conversion of raw materials into finished products creates

  • A. form utility
  • B. time utility
  • C. marginal utility
  • D. place utility
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