When Things Are Not Going Well,the Corrective Adjustments That Top

question 14

Multiple Choice

When things are not going well,the corrective adjustments that top executives need to make include

• A)discerning whether or not to promote better achievement of strategic performance targets ahead of financial performance targets.
• B)deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives.
• C)knowing when to replace poorly performing subordinates and when to do a better job of coaching them to do the right things.
• D)having the analytic skills to separate the problems due to a bad strategy from the problems due to bad strategy execution.
• E)deciding when adjustments are needed and what adjustments to make.

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Definitions:

Borrowing Increases

The act of increasing the amount of money borrowed, which typically leads to higher debt levels and potentially increased interest expenses.

Purchase Price

The amount paid to buy a good, service, or financial asset.

Off-Balance Sheet Lease Financing

Off-balance sheet lease financing involves leasing arrangements that are not recorded on a company's balance sheet, potentially making a company's financial condition appear stronger than it actually is.

Debt Ratio

A metric assessing a firm's leverage, determined by dividing its total liabilities by its total assets.