Which of the Following Goals Set by an Organization to Measure

question 45

Multiple Choice

Which of the following goals set by an organization to measure effectiveness indicates that it is using the external resource approach to measure organizational effectiveness?

• A) reduce production costs
• B) increase coordination and motivation of employees
• C) gain support of stakeholders such as government or environmentalists
• D) reduce delivery time to customer

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows over a period.

Monthly Interest Rate

The fraction of the annual interest rate divided by twelve, representing the interest for a single month.

Credit Policy

A credit policy is a set of guidelines that a company follows to determine the credit terms and conditions for its customers, including payment terms, credit limits, and how to manage delinquent accounts.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.