When Hiring an Outside Manager, the _____ Competence and the _____

question 120

Short Answer

When hiring an outside manager, the _____ competence and the _____ competence both need to be assessed.

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Definitions:

Zero-Based Budgeting

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," rather than just adjusting previous budgets.

Cash Budget

An estimate of cash inflows and outflows over a specific period, used to manage and plan for cash needs.

Minimum Cash Balance

The lowest amount of cash that a company aims to maintain in its accounts to adequately meet its operational and financial obligations.

Borrowing

The act of obtaining funds from a lender under the agreement to pay back the principal amount along with interest or other charges.