Goal Congruence Means

question 16

Multiple Choice

Goal congruence means

• A)there is alignment of organizational and managerial goals.
• B)the organization is aligned to the needs of the environment.
• C)the organization is aligned to shareholder goals.
• D)there is no divergence between organization and stockholder goals.

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Definitions:

Liquidation

The process of converting assets into cash or cash equivalents by selling them in the market.

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future, thus justifying the presence of its assets and liabilities.

Financial Restructuring

The process of reorganizing a company's financial structure, often involving re-negotiation of debts and equity, to improve its liquidity and ensure its survival.

WACC

The weighted average cost of capital, which is the average rate of return a company is expected to pay its security holders to finance its assets.