The Systems View Is Important to Managers Because It

question 83

Multiple Choice

The systems view is important to managers because it

• A) underscores the importance of the organization's environment.
• B) gives them a set procedure for making decisions.
• C) allows them to eliminate the interaction among various elements of the organization.
• D) reduces their risk of human error.
• E) shifts the focus from outside the company to inside the company.

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Definitions:

Operating Activities

These include the primary revenue-generating activities of a business, such as manufacturing, distributing, marketing, and selling a product or service.

Cash Dividend

A payout to shareholders from a company's earnings in the form of cash.

Comparative Balance Sheet

A financial statement presenting the assets, liabilities, and equity of an entity at two or more points in time to facilitate comparative analysis.

Direct Method

An approach to preparing the cash flow statement where actual cash flow information from the company's operations is used directly.