Which of the Following Is an Example of an Organization's

question 44

Multiple Choice

Which of the following is an example of an organization's strategic response to its external environment?

• A) Negotiating a new contract with the union
• B) Hiring a new CEO
• C) Implementing new plant safety standards
• D) Doing nothing in response to a competitor's new product
• E) Modifying the organization's culture

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Definitions:

Responsibility Accounting

A system of accounting that segments financial information by areas of responsibility, allowing managers to be held accountable for their areas' financial performance.

Managers

Managers are individuals in an organization responsible for directing and overseeing the work of a group of people towards the achievement of goals.

Residual Income

The income that exceeds the minimum rate of return, often used as a measure of the performance of investment centers within organizations.

Net Operating Income

Profit generated from a company's normal business operations, excluding deductions of interest and taxes.