Daniel Is Working on a Project Where He Needs to Anticipate

question 27

Multiple Choice

Daniel is working on a project where he needs to anticipate future events and conditions,as well as avoid costly mistakes.Daniel is engaged in the _____ managerial function.

• A)controlling
• B)planning
• C)organizing
• D)directing

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Definitions:

Capital Stock

The total amount of physical and financial assets owned by a company or country, including buildings, machinery, and equity investments.

Net Investment

The amount of investment in new capital (such as equipment, buildings, and inventory) minus depreciation of existing capital.

Depreciation

A reduction in the value of an asset over time, due to wear and tear, age, or obsolescence.

Net Investment

The total spending on new capital assets minus the depreciation on existing assets, indicating the growth in a company’s or economy's capital stock.