Four-Drive Theory Recommends Keeping All Four Drives in "Balance"; That

question 41

True/False

Four-drive theory recommends keeping all four drives in "balance"; that is, organizations should avoid too much or too little opportunity to fulfill each drive.

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Definitions:

Past Transactions

Historical financial activities or operations that have occurred in a company, used for reference or analysis in accounting processes.

Accounts Receivable

Accounts receivable representing amounts due from customers to a business for delivered but unpaid for goods or services.

Revenue

The sum of money earned from the sales of goods or services that are central to a company's main activities.

Inventory

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the near future.