The Second Step in the Development of Guiding Principles for a Firm

question 42

Multiple Choice

The second step in the development of guiding principles for a firm is to:

• A)ask oneself what one stands for or what the company stands for.
• B)articulate a clear vision regarding the firm's direction.
• C)identify clear steps as to how the cultural shift will occur.
• D)believe that the culture is actually possible, achievable.

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Definitions:

Common-Base Year Value

An accounting method used to compare financial statements of different years by translating figures into values relative to a single base year.

Accounts Receivable

Outstanding dues from customers for goods or services a company has already delivered.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Cash Ratio

A liquidity metric that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.