What Is the Purpose of the Feedback and Control Processes

question 12

Multiple Choice

What is the purpose of the feedback and control processes that accompany the implementation of strategy?

• A) To provide a chain of command by which senior management can control the actions of middle managers
• B) To provide an appraisal system to inform staff how well they have done in implementing the strategy
• C) To check whether targets are being met and other desired outcomes are being achieved

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Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Cash Outflows

Financial transactions representing money leaving a business, such as payments for expenses, investments, and loans.

Cash Inflows

Money or assets entering a business from various sources, including sales, investments, financing, and more.

Working Capital

The discrepancy between a firm's immediate assets and its short-term obligations, highlighting its short-term financial stability.