How Does Establishing and Administering Policies Help Organizations

question 52

Multiple Choice

How does establishing and administering policies help organizations?

• A) It allows companies to handle situations fairly and objectively.
• B) It allows companies to address issues on a case-by-case basis.
• C) It eliminates the need for documentation and record-keeping.
• D) It encourages employees to defend themselves by claiming ignorance of disciplinary norms.
• E) It leaves a lot of room for subjective decision-making.

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Definitions:

Interest Cost

The cost incurred by an entity for borrowing funds, essentially the price paid for the use of borrowed money.

Bonds Issued

Debt securities sold by corporations or governments to investors to raise capital, requiring periodic interest payments and repayment of principal at maturity.

Bonds at Discount

Bonds issued below their face value, where the difference between the issue price and the face value represents the interest.

Journal Entry

A record in the accounting journal that represents a single transaction and shows the debits and credits to the various accounts affected by the transaction.