The Reason OD Has Emerged Is Because the External Environment

question 2

Multiple Choice

The reason OD has emerged is because the external environment for most organizations is becoming more _____.

• A)simple and predictable
• B)complex and dynamic
• C)bureaucratic and rigid
• D)subject to manipulation by the firm
• E)static and predictable

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Definitions:

General Objective

The overarching, broad goal that guides decision making and strategy within an organization or project.

Derived External User Objective

A goal or requirement for financial information that is created based on the needs of external users of financial statements.

Derived Company Objective

Strategic goals or intentions that are developed based on an analysis of a company's environment and internal capabilities.

CFA's Comprehensive Business Reporting Model Subcommittee

A subcommittee of the Chartered Financial Analyst Institute focused on developing and improving the standards and practices for comprehensive business reporting.