What Is the Advantage of Establishing and Administering Policies in Organizations

question 10

Multiple Choice

What is the advantage of establishing and administering policies in organizations?

• A) It allows companies to handle situations more fairly and objectively.
• B) It allows companies to address issues on a case-by-case basis.
• C) It eliminates the need for documentation and record keeping.
• D) It encourages employees to defend themselves by claiming ignorance of disciplinary norms.
• E) It leaves a lot of room for subjective decision making.

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Definitions:

Amortized

Adjusted through gradual reduction of the loan balance or asset value over time by making regular payments that cover both principal and interest.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Property, Plant, & Equipment

Long-term tangible assets that are used in the operation of a business and are expected to be used over more than one fiscal year.