Managers Need to Know That the Only Way the Control

question 63

Multiple Choice

Managers need to know that the only way the control process begins is by:

• A) comparing results with established standards for measurement.
• B) establishing objectives and standards for measuring them.
• C) measuring actual performance.
• D) taking necessary action.

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Definitions:

Net Income

The amount of profit a company generates after accounting for all expenses, taxes, and costs.

Total Dividends

The sum of all dividend payments made by a company to its shareholders during a specific period.

Trading Securities

Financial instruments that are purchased by a company not for long-term investment but rather for the purpose of earning a return through short-term price fluctuations.

Fair Value

An estimate of the price at which an asset or liability would be traded in a fair transaction between willing parties.