Modifying the Companies Objectives, Policies and Routines in Response to Errors

question 42

Multiple Choice

Modifying the companies objectives, policies and routines in response to errors is an example of

• A)first-order learning.
• B)continuous improvement.
• C)second-order learning.
• D)single-loop learning.
• E)double-loop learning.

---

Definitions:

Accounting-based Incentive Plans

Compensation plans that reward employees based on meeting certain accounting metrics, such as earnings per share or return on assets.

Long-term Business Focus

A strategic approach that prioritizes sustainable growth, investments, and operational decisions that benefit a company in the long run rather than focusing on short-term gains.

Unwanted Attention

Undesirable focus or notice from others, often causing discomfort or distress.

Accounting Methods

Accounting methods refer to the rules a company follows in reporting revenues and expenses in its financial statements. The two main types of accounting methods are accrual basis and cash basis.