Why Does Improving a Small, Routine Decision Have Business Value

question 14

Multiple Choice

Why does improving a small, routine decision have business value for a company?

• A)A small decision may have a great economic impact on the company.
• B)Even a routine decision may have a "ripple" effect through a corporation.
• C)A small decision has business value when added with all the other small decisions made in the company.
• D)Small, routine decisions typically do not have any business value for a company.

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Definitions:

Fiscal Period

Refers to any period used for accounting purposes, typically a year, which can either align with the calendar year or be a different 12-month period.

Insurance

A financial product sold by insurance companies to safeguard against financial losses from specific risks, such as accidents, theft, or natural disasters.

Adjusting Entry

An accounting entry made in the journals at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, listing revenues and expenses to show net profit or loss.