Through Careful Monitoring of the Financial Budgets of a Firm

question 13

Multiple Choice

Through careful monitoring of the financial budgets of a firm, managers can detect potential problems in reaching their financial goals and take actions to reverse the problem. This is an example of the management function of

• A) Planning.
• B) Controlling.
• C) Leading.
• D) Organizing.
• E) Budgeting.

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Definitions:

Deferred Payment

A delayed payment agreement which allows the buyer to take possession of goods or services upfront and pay for them at a later date.

Cash Flows

The gross amount of financial inflows and outflows within a company, crucially impacting its liquidity status.

Economic Conditions

The current state of the economy in a country or region, encompassing factors like inflation rates, unemployment levels, and GDP growth.

Consumer Preferences

The subjective tastes and desires influencing the buying behavior of consumers among different goods and services.