Goals Provide the Direction for All Management Decisions and Actions

question 136

Multiple Choice

Goals provide the direction for all management decisions and actions and form the ________.

• A) criteria against which actual accomplishments are measured
• B) profit basis that the organizations will accomplish for stockholders
• C) desired outcomes that the organizational members will achieve
• D) basis for the sharing of profits with the employees at the end

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Definitions:

Improved Liquidity

Refers to an increase in the ease with which assets can be converted into cash without a significant loss in value.

Stock's Expected Price

An estimate of the future price of a stock based on earnings forecasts, market trends, and other factors.

Target Capital Structure

The optimal mix of debt, equity, and other sources of financing that a company aims to achieve for minimizing cost of capital and maximizing value.

Residual Dividend Policy

A strategy where dividends are paid to shareholders after all project and operational expenses, and planned investments are covered.