The One Factor That Company Executives Need Not Worry About

question 55

Multiple Choice

The one factor that company executives need not worry about when their company is managing many diverse,unrelated firms is

• A) staying abreast of what's happening in each industry and subsidiary.
• B) picking business-unit heads who have the requisite combination of managerial skills and know-how to motivate people.
• C) understanding the true value of strategic investment proposals by business-unit managers.
• D) knowing what to do if a business unit stumbles.
• E) "managing by the numbers"-that is,keeping a close track on the financial and operating results of each subsidiary.

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Definitions:

Completing Production

The phase in the manufacturing process where products are finished and ready for sale.

Homogeneous Units

Units that are uniform in nature and use, often used in production or service contexts to measure output or productivity.

Net Income Recognition

The process of recording earnings that accurately reflect the net income earned by a company during a specific time period, adhering to the principles of revenue recognition and expense matching.

Timing of the Recognition

The specific point in time when a transaction or event is recognized in the financial statements, often determined by revenue recognition or expense recognition principles.