The Systems View Is Important to Managers Because It

question 11

Multiple Choice

The systems view is important to managers because it

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

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Definitions:

Assets

Resources controlled by a business due to past transactions or events, from which future economic benefits are expected to flow to the entity.

Accounts Receivable

Accounts Receivable are amounts owed to a company by customers for goods or services delivered on credit, expected to be collected as cash.

Notes Payable

A written agreement to pay a specific amount to a lender at a future date, typically including interest payments, classified as a liability on the balance sheet.

Ending Equity

The total value of all ownership interests in the company at the end of the accounting period, after all revenues and expenses are accounted for.