When Controls Are Confusing or Too Sophisticated for Employees, the Supervisor

question 73

Multiple Choice

When controls are confusing or too sophisticated for employees, the supervisor should:

• A) Create charts, graphs, and reports to make the control easier to understand.
• B) Stop using controls altogether.
• C) Consult with upper management about the problem.
• D) Devise new controls that meet departmental needs and are understandable to everyone who uses them.

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Definitions:

Normal Curve

The normal curve, or normal distribution, is a bell-shaped curve that shows the probability distribution of a continuous random variable, where most occurrences take place near the mean.

Marginal Investor

An investor whose actions might influence the market price of a security and who is typically sensitive to changes in risk levels or return.

Required Rate

The minimum return an investor expects to achieve by investing in a particular asset, also known as the required rate of return.

Expected Rate

The return that an investor anticipates or estimates will be achieved over a certain period on an investment.