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Briefly Identify and Explain the Characteristics of an Effective Control

question 24

Essay

Briefly identify and explain the characteristics of an effective control system.


Definitions:

Shareholder Value

The return on investment that shareholders receive from a company, including dividends and stock price appreciation.

Volatility of Earnings

The degree of variation of a company's earnings over a specified period, indicating the predictability or stability of its income.

Optimal Level

The most efficient, effective or desirable point or degree of an operation or process.

EBIT

stands for Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.

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