ABC Corp Is an Information Technology Company

question 73

Multiple Choice

ABC Corp. is an information technology company. The IT department wants to upgrade the firm's technological infrastructure but the cost of upgrading is likely to take up at least 60 percent of the firm's cash reserves. The finance manager is reluctant to release funds for this purpose. According to him, "The economy is still in a state of uncertainty. The company is better off preserving its cash reserves rather than investing it."
-In order to increase the quality of their objectives, managers should ________.

• A) set employees' goals as high as possible
• B) ensure that they set objectives entirely by themselves
• C) establish goals which are within easy reach
• D) let the people responsible for attaining the objectives have a voice in setting them
• E) avoid relating objectives to specific actions

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Definitions:

Liabilities

Financial obligations or debts owed by a company to creditors, which must be settled over time through the transfer of assets, provision of services, or other economic benefits.

Assets

Resources owned or controlled by a business that are expected to produce economic value or benefits in the future.

Accounting Equation

A fundamental principle representing the relationship between an entity's assets, liabilities, and equity; Assets = Liabilities + Equity.

Creditor

An entity or person that lends money or extends credit to another party, expecting to be repaid in the future.