The One Factor That Company Executives Need Not Worry About

question 102

Multiple Choice

The one factor that company executives need not worry about when their company is managing many diverse, unrelated firms is to

• A)stay abreast of what's happening in each industry and subsidiary.
• B)pick business-unit heads having the requisite combination of managerial skills and know-how to motivate people.
• C)understand the true value of strategic investment proposals by business-unit managers.
• D)know what to do if a business unit stumbles.
• E)"manage by the numbers"-that is, keep a close track on the financial and operating results of each subsidiary.

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Definitions:

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Carrying Amount

The amount at which an asset or liability is recognised after deducting any accumulated depreciation (amortisation), accumulated impairment losses and allowances thereon.

Fair Value

An estimate of the price at which an asset or liability could be exchanged in an orderly transaction between knowledgeable, willing parties in an arm's length transaction.

Technical Services

Specialist assistance provided by a business or individual in areas such as IT, engineering, or scientific research.