High Fence Corporation Is Currently Implementing a Management by Objectives

question 101

Multiple Choice

High Fence Corporation is currently implementing a management by objectives (MBO) program. Managers and employees jointly set goals and develop action plans, and goal achievement is evaluated on an annual basis. High Fence is missing which major activity that must occur in order for MBO to be successful?

• A) Developing a mission statement
• B) Developing tactical goals
• C) Reviewing progress
• D) Reviewing operational plans
• E) None of these

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Definitions:

Break-even Point

The Break-even Point is the financial state at which total revenues equal total expenses, resulting in neither profit nor loss, and is crucial for assessing the viability of projects or businesses.

Margin Of Safety

The difference between actual sales and the breakeven point, indicating the amount by which sales can drop before losses begin.

Unit Selling Price

The price at which a single unit of a product is sold to customers.

Sales

The total amount of goods or services sold by a company, serving as a major component of its revenue.