The Main Reason That Most Entrepreneurial Start-Up Companies Adopt a Formalized

question 49

Multiple Choice

The main reason that most entrepreneurial start-up companies adopt a formalized process of strategic planning processes at some stage of their development is:

• A)To allow quantitative analysis to be applied to strategic decision
• B)To limit the power of founders
• C)To facilitate coordination and control as a company grows in size and complexity
• D)To enable decisions to become focused more on long term development

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Definitions:

Balance Sheet

A summary that presents a business's assets, financial obligations, and the equity held by its shareholders for a specific timeframe.

Adjusting Entry

Journal entries made in the accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Accrued Expense

An expense that has been incurred but not yet paid, reflecting in a company's financial statements before the cash changes hands.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.