Which of the Following Statements Is True Regarding a Management

question 7

Multiple Choice

Which of the following statements is true regarding a management by objective (MBO) program?

• A) Many elements in MBO programs match propositions of cognitive evaluation theory.
• B) MBO strongly advocates that the goals should be assigned by the managers without the employees participating in the goal setting process.
• C) MBO programs set generalized rather than specific goals.
• D) MBO programs involve explicit time periods.
• E) MBO programs strongly discourage providing performance feedback because it can have negative effects on employee motivation.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair market value of its net assets, representing future economic benefits.

Investment in Subsidiary

A financial stake held by a parent company in a subsidiary, characterized by ownership of more than 50% of the subsidiary's voting stock.

Pre-acquisition Profits

Earnings generated by a subsidiary prior to being acquired by a parent company, often considered in the determination of goodwill or investment value.

Subsidiary Asset

Assets that are owned by a subsidiary, which is a company controlled by another company (the parent).