Which of the Following Is True About Decision Making

question 83

Multiple Choice

Which of the following is true about decision making?

• A)Making a decision and not acting on it is better than not making a decision at all.
• B)Identifying relevant information means that the manager has complete information.
• C)In order to implement the chosen alternative, many subsequent and related decisions must be made.
• D)Effective managers prefer planning for the future rather than conducting a retrospective analysis.
• E)If the advantages of an alternative are significantly high, its disadvantages need not be evaluated.

---

Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest in the company.

Vertical Analysis

An approach to financial statement examination where each component within the principal groups of accounts (assets, liabilities, and equity) on a balance sheet is shown as a ratio of the overall category amount.

Total Assets

The sum of all resources owned by an entity, measured in monetary terms, and represented on the balance sheet.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects cash from credit sales by measuring the number of times receivables are collected over a period.