In a Successful Company, the Purpose of a Control System

question 31

Multiple Choice

In a successful company, the purpose of a control system is to:

• A) provide managers with a set of incentives to motivate employees to work toward company goals.
• B) allow the managers to use punishments as a tool to ensure that the employees meet the company targets.
• C) collect values, norms, beliefs, and attitudes and share them with people and groups in an organization.?
• D) decide how a company should create, use, and combine organizational structure and culture.
• E) assign employees to specific value creation tasks and roles and specify how these tasks and roles should work together.

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Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often reinvested in the business.

Intrapreneurs

Employees within a company who are assigned to work on a special idea or project and are given the freedom to develop the project as an entrepreneur would.

R&D Activities

Activities centered around research and the development of new products, services, or processes.

Salaried Employees

Individuals who receive a fixed compensation from their employer regularly, typically on a monthly or annual basis, regardless of the number of hours worked.