Which of the Following Statements About Management by Objectives (MBO)

question 28

Multiple Choice

Which of the following statements about management by objectives (MBO) is INCORRECT?

• A) A disadvantage of MBO is that managers are frequently reluctant to give feedback.
• B) MBO is a process whereby superior and subordinate managers of an organization jointly identify its common goals
• C) Organizations that effectively use MBO are 44.6% more productive than those that don't.
• D) MBO can cause employees to neglect important unmeasurable parts of their jobs.
• E) MBO can reduce the amount of paperwork within an organization.

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Definitions:

Bond Redemption

Bond redemption is the process of repaying the principal amount of a bond at or before its maturity date by the issuer.

Carrying Value

Also known as book value, it is the value of an asset as shown on the balance sheet, calculated as the original cost minus accumulated depreciation.

Premium on Bonds Payable

The additional amount over the face value for which bonds are sold, reflecting the market's perception of lower risk or higher interest compared to the market rate.

Bonds Payable

Long-term liabilities representing money borrowed by a company that must be repaid, typically with interest, at a future date.