When Management Seeks to Achieve Personal Departmental Objectives That May

question 56

Multiple Choice

When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing:

• A) budgetary slack
• B) padding
• C) goal conflict
• D) cushions

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Current Liability

A company's financial obligations that are due within one year or within the normal operating cycle, including accounts payable and short-term loans.

Current Liability

An obligation that is due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Expenses

The outflows or using up of assets as part of operations of a business to generate revenue.