Which of the Following Is a Corrective Action a Company

question 2

Multiple Choice

Which of the following is a corrective action a company might take to correct unfavorable variances?

• A) Divesting a division
• B) Revising objectives
• C) Raising capital with stock or debt
• D) Allocating resources differently
• E) All of the above

---

Definitions:

Decentralization

The process of distributing or dispersing functions, powers, people, or things away from a central location or authority.

Decision Making and Control

Processes involved in selecting among various options and implementing the selected course of action, ensuring objectives are achieved efficiently.

Binding Price Ceiling

A legally established maximum price for goods or services that is below the market equilibrium price, leading to shortages.

Binding Price Floor

A government or regulatory-imposed price control that sets a minimum price for a good or service, potentially leading to excess supply if set above the equilibrium price.