Which type of financial ratio measures how well the managers of an organization are
creating value from the organization’s assets?
A. Leverage ratios
B. Liquidity ratios
C. Profit ratios
D. Current ratios
E. Activity ratios
Henry Fayol believed that in order to increase the efficiency of the management
process, it is essential that:
A. authority should be concentrated at the top of the chain of command.
B. managers should discourage creativity in employees so that they stay focused on
their jobs.
C. there should be a greater number of levels in a managerial hierarchy.
D. managers should not have the right to give orders to employees; they should only
give polite instructions.
E. all organizational members are entitled to be treated with justice and respect.