What Is the First Step in the Management by Objectives

question 20

Multiple Choice

What is the first step in the Management by Objectives Method?

• A) set the organization's goals
• B) set departmental goals
• C) discuss departmental goals
• D) define expected results

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Definitions:

Residual Income

The income that exceeds the minimum rate of return, often used as a measure of the performance of investment centers within organizations.

Net Operating Income

Profit generated from a company's normal business operations, excluding deductions of interest and taxes.

Minimum Rate Of Return

The least expected rate of return on an investment necessary for it to be considered a viable option.

Return On Investment

A performance measure used to evaluate the efficiency of an investment or compare different investments.