Marty Uses Computer Forecasts to Determine Possible Outcomes of an Intended

question 73

Multiple Choice

Marty uses computer forecasts to determine possible outcomes of an intended change in his division.What element of management is Marty utilizing?

• A) strategy formulation
• B) goal setting
• C) crisis management
• D) contingency planning
• E) related diversification

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Definitions:

Effective Interest Method

A method of amortizing the discount or premium on bonds payable that results in a constant rate of interest over the life of the bond.

Semiannual

Occurring twice a year; a term often used in the context of payments, reporting periods, or interest calculations.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, unrelated to market value.

Effective Interest Amortization

A method of allocating loan interest payments over the life of the loan, taking into account the varying principal amounts.