What Is the Likely Outcome of Using Performance Measures That

question 50

Multiple Choice

What is the likely outcome of using performance measures that subsidiary managers perceive to be unachievable?

• A) Frustrated managers
• B) Diligent attention to operational efficiency
• C) Success
• D) Optimal decision-making

---

Definitions:

Capital to Purchase Fixed Assets

Financial resources allocated for the purchase of long-term physical assets that a company uses in its operations.

Cash Flow Statement

A financial document providing comprehensive detail about a company's cash inflows and outflows over a specified period.

Noncash Asset

Assets owned by a business not in the form of cash but may be converted into cash within a year, such as inventory and property.

Change in Cash

The difference in a company's cash balance over a specified period, indicating the net increase or decrease in cash.