As Environmental Uncertainties Increase, Managers Must Develop Techniques and Methods

question 112

Essay

As environmental uncertainties increase, managers must develop techniques and methods for collecting, sorting through, and interpreting information about the environment. Discuss four of these methods, explaining when and why each would be used.

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Definitions:

Return on Assets

A measure of how effectively a company is using its assets to generate earnings.

Revenues

Revenues are the total amount of money received by a company for goods sold or services provided during a specific period.

Expenses

Costs incurred in the process of earning revenue, often categorized into operating and non-operating expenses.

Balance Sheet

An accounting statement that itemizes the total assets, liabilities, and equity of shareholders at a defined date.