_____ Is Are) the Most Basic Component of a Management

question 53

Multiple Choice

_____ is are) the most basic component of a management control system.

• A)The organization's long-range budget
• B)The organization's goals
• C)The stockholder's preferences
• D)Top management's preferences

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Definitions:

Debts Incurred

Obligations or liabilities taken on during the course of financial transactions, often as a result of borrowing money or purchasing goods and services.

Owner's Equity

The residual interest in the assets of the business after deducting liabilities, representing the ownership's financial stake.

Management Efficiency

The effectiveness with which managers utilize resources and make decisions to achieve organizational goals with minimal waste or effort.

Leverage

The use of various financial instruments or borrowed capital, such as debt, to increase the potential return of an investment.