A Division Manager Whispered to His Peer as They Left

question 7

Multiple Choice

A division manager whispered to his peer as they left the monthly executive meeting, "Our new CEO is going to play hardball. Any of us whose division is performing with significant negative deviation from the established budget is going to get a lot of her concentrated attention." "What do you expect?" countered Saif. "She told us in our meeting that she would be using ________ as part of her control system."

• A)the balance sheet
• B)management myopia
• C)our employment relationship
• D)the principle of exception
• E)the balance scorecard

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Definitions:

Issued Shares

The total number of shares that have been allocated to shareholders, including both public investors and company officers.

Outstanding Shares

Refers to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Paid-in Capital

The amount of money that a company has received from investors during common or preferred stock issuance, which is recorded in the equity section of the balance sheet.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock.