Narrative 16-2 Interpublic Is the World's Third-Biggest Marketing Services Group. in 2005

question 68

Multiple Choice

Narrative 16-2
Interpublic is the world's third-biggest marketing services group. In 2005, the company informed the Securities and Exchange Commission (SEC) that it "had found accounting errors resulting from incompetence as well as falsified books and records, violations of the laws and company policies, and inappropriate customer charges" that required it to restate its earnings for every year in the decade. Interpublic is guilty of overstating both its expenses and its revenues in its earnings reports. The company blames its faulty revenue reporting on "inadequate procedures for review of customer contracts." This fraudulent activity will more than likely result in a default on the company's debt and the loss of its stock market listing.
-Refer to the Narrative 16-2.It appears that the control method Interpublic believed it should have used was one that focused on whether rules and policies were being followed.Which of the following defines this approach?

• A) bureaucratic control
• B) objective control
• C) suboptimization
• D) self-control

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls and regulates involuntary body functions, including heart rate, digestion, and respiratory rate.

Partner Characteristics

Traits or qualities of an individual that may be considered desirable or important in a relationship partner.

Physical Attractiveness

The degree to which a person’s physical traits are considered aesthetically pleasing or beautiful by others.

General Measure

A broadly applicable evaluation or assessment tool designed to quantify attributes or performance across a wide range of subjects or contexts.