For Many Organizational Activities, Output and Behaviour Controls Are Inappropriate

question 13

Multiple Choice

For many organizational activities, output and behaviour controls are inappropriate for all but which one of the following reasons?

• A)Rules are of little use in situations requiring innovation
• B)Professionals engage in work that is hard to apply SOPs to
• C)SOPs are of little use in crisis situations
• D)Output controls measure quality well
• E)It is difficult to monitor all employees on a day-to-day basis

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Definitions:

Par Value

Is the face value of a bond or stock, representing the amount that will be returned to the investor at maturity or the value at which the stock is noted on the balance sheet.

Default Risk Premiums

The additional yield that investors demand for holding a bond that has a risk of default over a risk-free security.

Treasury Bond

A long-term, interest-bearing security issued by the government, with a maturity period typically longer than ten years.