Explain Why It Is Important That Managers' Goals Are Set

question 21

Essay

Explain why it is important that managers' goals are set at appropriate levels and why stretch goals work best.

---

Definitions:

Financial Statement

A documented account of financial transactions and standing for businesses, individuals, or alternative entities.

Permanent/Temporary

Terms distinguishing between accounts that are not closed out or reset at the end of the accounting year (permanent accounts) and those that are (temporary accounts).

Normal Balance

The standard side (debit or credit) on which increases to an account are recorded.

Financial Statement

Reports that summarize the financial condition and operations of a business.