What Do Companies Need to Do (In Prescribing Policies and Procedures)to

question 29

Multiple Choice

What do companies need to do (in prescribing policies and procedures) to promote the creation of a favorable work climate that facilitates independent action on the part of empowered employees for good strategy execution?

• A) Give organization members clear direction and place reasonable boundaries on their actions.
• B) Empower employees to act within the company's set boundaries in pursuit of company goals.
• C) Allow company personnel to act with some defined degree of freedom,especially when individual creativity and initiative are more essential to good strategy execution than standardization and strict conformity.
• D) Institute policies that give employees substantial leeway to carry out activities the way they think best.
• E) All of these.

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Definitions:

Withdrawals Account

An account used to record the amounts withdrawn by the owner from the business for personal use.

Income Summary

An account used during the closing process that summarizes the revenues and expenses of an accounting period to calculate the net income or loss.

Temporary Account

A temporary account is an account that is closed at the end of each accounting period, with its balance transferred to a permanent account.

Real Accounts

Accounts related to assets, liabilities, and equity that are not closed at the end of the accounting period.