An Equitable or Constructive Obligation Arises When

question 50

Multiple Choice

An equitable or constructive obligation arises when:

• A) Social or moral sanctions or custom leaves the entity no realistic alternative other than to make a sacrifice of future benefits.
• B) Management makes a discretionary decision to make a future sacrifice of economic benefits.
• C) Management communicates its decision to commit to the future sacrifice of economic benefits to the parties concerned.
• D) Social or moral sanctions or custom leaves the entity no realistic alternative other than to make a sacrifice of future benefits and management communicates its decision to commit to the future sacrifice of economic benefits to the parties concerned.
• E) All of the given answers.

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Definitions:

Management By Objectives

A performance management approach where managers and employees work together to identify and set objectives that are tangible, verifiable, and measurable.

MBO Approach

Management by Objectives; a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.

Goals

Specific, measurable, achievable, relevant, and time-bound objectives that guide an individual's or organization's efforts.

Mystery Shoppers

Individuals employed covertly to evaluate customer service, product quality, and the overall environment of retail or service outlets.