Which One of the Following Statements Is TRUE of Planning

question 72

Multiple Choice

Which one of the following statements is TRUE of planning in dynamic environments?

• A)Organizations should follow a pyramidal structure when operating in uncertain environments.
• B)Organizations must discontinue formal planning in such a scenario.
• C)To be useful in a dynamic environment,plans need to be specific and unchanging.
• D)Flatter organizational hierarchies are necessary for planning in uncertain environments.

---

Definitions:

Legal Capital

The portion of a company's equity that cannot legally be distributed to the shareholders as dividends, typically the par value of issued shares.

Corporate Creditors

Individuals or institutions owed money by a corporation, typically as a result of lending money or providing goods and services on credit.

IFRS

International Financial Reporting Standards are accounting guidelines created by the International Accounting Standards Board, increasingly adopted worldwide for drafting financial statements of public companies.

Reserves

Funds set aside by a company to cover future obligations, losses, or unforeseen expenses.