Diversification Is a Strategy of Increasing Market Share for Present

question 104

True/False

Diversification is a strategy of increasing market share for present products in existing markets.

Understand the components and significance of a voucher system in controlling cash receipts and disbursements.

Comprehend the cost-benefit principle underlying the adoption of internal control features by a company.

Recognize the responsibility of management in establishing an effective system of internal control.

Appreciate the objectives of a system of internal control, including the safeguarding of assets.

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Definitions:

Motivating Workers

The process of incentivizing employees to improve their performance and productivity.

Theory X

McGregor’s traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs.

Theory Y

McGregor’s humanistic view of management whereby it is assumed that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs.