The Formal Monitoring,evaluation,and Feedback Systems That Allow Managers to Determine

question 39

Multiple Choice

The formal monitoring,evaluation,and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plans are known as:

• A)Organizational socialization
• B)Clan control
• C)Control systems
• D)Concurrent systems
• E)Market control

Apply the concept of price-earnings (P/E) ratio to evaluate the implications of new projects on firm valuation.

Calculate and analyze the outcomes of initial public offerings (IPOs) for firms, including cash received and implications for book value and market valuation.

Understand the mechanisms and implications of Dutch auctions in the context of stock offerings.

Analyze the impact of subscription prices and rights value on shareholder decisions in rights offerings.

---

Definitions:

Adequate Capital

Sufficient funds required by a business to finance its operations and meet its obligations without facing financial distress.

Bank Run

A situation where a large number of a bank's customers try to withdraw their deposits simultaneously because they believe the bank might fail.

Canadian Deposit Insurance Corporation (CDIC)

A federal crown corporation in Canada that provides deposit insurance to protect the deposits made by consumers in member financial institutions in case of their failure.

Bond Indenture

A legal and binding agreement between the bond issuer and the bondholders that specifies the terms of the bond, including the repayment schedule, interest rate, and the duties and responsibilities of both parties.