A Change That Is Made in Response to Arising Problems

question 47

Multiple Choice

A change that is made in response to arising problems or opportunities is called __________.

• A)radical change
• B)incremental change
• C)proactive change
• D)reactive change
• E)process change

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Definitions:

Liability

Financial obligations or debts a company owes to others.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's assets.

Withdrawal

A withdrawal refers to the act of removing funds from a bank account, investment, or trust.

Expense

Expense refers to the outflow of money or other assets, incurred in the process of generating revenue, including costs like rent, salaries, and utilities.