After BP Moved from Strategic Controls to Financial Controls

question 26

Multiple Choice

After BP moved from strategic controls to financial controls,

• A)financial controllers like John Brown rose to the top.
• B)environmental worries were completely ignored.
• C)operational managers were being asked to trade off savings that were certain against risks they thought very unlikely.
• D)the company withdrew from all risky exploration activities.

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Definitions:

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or the business cycle, whichever is longer.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.

Working Capital

The discrepancy between a company's immediate assets and its short-term obligations, revealing the available liquidity for operating activities.

Plant and Equipment

Physical assets used in the operation of a business, including machinery, buildings, and vehicles.