A Control System That Attempts to Focus an Organization's Attention

question 137

Multiple Choice

A control system that attempts to focus an organization's attention and learning on key strategic issues is known as a(n)

• A)diagnostic control system.
• B)boundary system.
• C)belief system.
• D)interactive control system.
• E)isolated system.

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Definitions:

Industry Average

A benchmark or average measurement of performance or financial metrics within a particular industry sector.

Insolvency

A financial state in which an entity can no longer meet its debt obligations, leading to legal consequences such as bankruptcy.

Market To Book Value

A financial ratio used to compare a company's current market price to its book value, indicating how much shareholders are paying for the net assets of a company.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a firm uses its equity to generate profit.