How Is Management Using Controls When They Allow Decision Making

question 75

Multiple Choice

How is management using controls when they allow decision making at lower levels and encourage employees to work together in teams?

• A) They are adapting to change and uncertainty.
• B) They are discovering irregularities and errors.
• C) They are detecting opportunities and increasing innovation.
• D) They are providing performance feedback.
• E) They are decentralizing decision making.

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Definitions:

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company, reported in the cash flow statement.

Net Income

The net profit of a company following the deduction of all expenses and tax amounts from its total income.

Bonds Payable

Long-term debt securities issued by corporations or governments to raise capital, with an obligation to pay back the principal along with interest.