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Discuss Management by Objectives (MBO)

question 103

Essay

Discuss management by objectives (MBO).


Definitions:

Minimum Required Rate

The lowest return on investment that an investor is willing to accept, considering the risk involved.

Residual Income

The net operating income an investment earns above the minimum rate of return expected by its investors or company management.

Turnover

The rate at which inventory is sold and replaced or an employee leaves and is replaced within a company.

Turnover

Turnover is a financial metric that measures the rate at which a company sells and replaces its inventory or the efficiency with which it uses its assets to generate sales.

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