One of the Primary Advantages of Management by Objectives (MBO)

question 59

Multiple Choice

One of the primary advantages of management by objectives (MBO) is that ________.

• A) it saves time
• B) it is an easy process
• C) it gains employee commitment
• D) it reduces the volume of paper work in the organization
• E) it places the responsibility for goal attainment solely on managers

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Definitions:

Trade-in Allowance

The amount credited to a buyer by a seller for the property or goods being part-exchanged.

Accumulated Depreciation

The total depreciation for an asset that has been recorded up to a specific point in time, reflecting its decline in value.

Fair Market Value

The price at which an asset would exchange hands between a willing buyer and seller, both having reasonable knowledge of all necessary facts.

Income Tax Method

When plant assets are exchanged, tax law says the gain or loss must be absorbed into the cost of the new asset.