"Levers of Control," in Addition to a Diagnostic Control System

question 18

Multiple Choice

"Levers of control," in addition to a diagnostic control system, are needed in an organization because ________.

• A) diagnostic controls have been found to lead to poor financial performance
• B) diagnostic controls have no place in a balanced scorecard system
• C) pressure to perform on diagnostic controls may lead to unethical behavior
• D) they are mandated by the Financial Accounting Standards Board

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Definitions:

Small Reporting Company

A designation by the SEC for smaller public companies that allows them to comply with less stringent financial reporting and disclosure requirements.

Annual Revenues

The total income generated by a business from its operations over a fiscal year before any expenses are subtracted.

Voting Securities

Financial instruments that give the holder the right to vote on matters of corporate policy and the composition of the board of directors.

Non-Affiliates

Entities or individuals that are not directly connected through ownership or control with another entity.