Management by ________ Is the Practice That Directs Executive Attention

question 162

Multiple Choice

Management by ________ is the practice that directs executive attention to large budget variances.

• A)control
• B)objective
• C)exception
• D)analysis

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest rate (the coupon) at regular intervals until the bond matures, when the principal amount is repaid.

Zero-Coupon Bond

A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, offering profit at maturity when the bond is redeemed for its full face value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including all payments of principal and interest.