A Lack of Participation Error Is Most Likely to Occur

question 120

Multiple Choice

A lack of participation error is most likely to occur when:

• A) the planning process becomes an end in itself.
• B) the performance of top management is not monitored.
• C) key persons are not included in the strategic planning.
• D) there is lack of efficiency in vertical communication.
• E) the cost leadership strategy and the differentiation strategy are used simultaneously.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.