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Discuss the Three Characteristics of an Effective Control System in an Organization

question 84

Essay

Discuss the three characteristics of an effective control system in an organization and illustrate each of them with a specific example from an organization of your choosing.


Definitions:

Price Floor

A government or regulatory-imposed minimum price set above the equilibrium market price, aimed at ensuring that the market price of a good or service cannot fall below a certain level.

Shortage

A market condition where the demand for a product exceeds the supply at a given price, often leading to higher prices.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

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