According to Henri Fayol, an Effective Plan Should Have Four

question 5

Multiple Choice

According to Henri Fayol, an effective plan should have four qualities, namely, unity, continuity, accuracy, and

• A)sustainability.
• B)flexibility.
• C)accountability.
• D)consistency.
• E)synergy.

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Definitions:

Stockholders' Equity

The ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Debt-To-Equity Ratio

A ratio that demonstrates the mix of shareholder equity versus debt financing employed to fund a company's assets.

Long-Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.

Working Capital

The difference between current assets and current liabilities, indicating the short-term financial health of a business.