The Planning/control Cycle Has Two Control Steps: (1)control the Direction

question 57

True/False

The planning/control cycle has two control steps: (1)control the direction by comparing results with the plan and (2)control the direction by increasing organization diversity and synergy.

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Definitions:

Debt-Equity Ratio

A calculation that indicates the financial leverage of a firm, determined by dividing its overall liabilities by the equity of the shareholders.

Pre-Tax Cost

Pre-Tax Cost refers to the cost of an expense or investment before the deduction of taxes.

Required Return

The minimum expected return by investors for providing capital to a company or project, considering the risk involved.

EBIT

A profitability metric for a company that omits expenses related to interest and income taxes, known as Earnings Before Interest and Taxes.