Lia Runs a Day Care Center

question 92

Multiple Choice

Lia runs a day care center. She is very particular about the kind of attention her staff lends to the children who come to the day care center. She hires employees who love children and are capable of taking care of them with utmost patience. Her employees are attentive, proactive, and sensitive to the needs of the children. This scenario illustrates that Lia uses _____.

• A) concertive control
• B) objective control
• C) bureaucratic control
• D) normative control

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Definitions:

Expense Account

An account that records the costs incurred by a business during a period, such as rent, utilities, and salaries.

Dividends Declared

Profits that a company's board of directors has decided to distribute to its shareholders, typically in the form of cash payments or additional shares.

Cash Account

A financial account that records cash transactions, both receipts and disbursements, within a business.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company to reinvest in its core business or to pay debt.