An Organization Shifts Its Budget from a Few, Large Projects

question 98

Multiple Choice

An organization shifts its budget from a few, large projects to accommodate a number of smaller projects every year. It also decentralizes power and gives additional responsibilities to individual project managers. This is an example of the use of _____ control.

• A) physical
• B) information
• C) structural
• D) financial
• E) screening

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Definitions:

Incremental Cash Flows

The difference between a firm’s future cash flows with a project and without the project.

Outstanding Shares

The total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and restricted shares.

Merger

The process by which two or more companies combine to form one entity, often with the intention of increasing competitive advantage or expanding market reach.

Purchase Method

The purchase method is an accounting approach used in mergers and acquisitions, where the assets and liabilities of the acquired company are consolidated at their fair market values.