Management by Exception Means

question 38

Multiple Choice

Management by exception means:

• A) only investigating variances that differ significantly from plan.
• B) rewarding exceptional staff.
• C) delegating responsibility.
• D) understanding that exceptional circumstances may affect expected results.

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Definitions:

Pooling Agreement

An agreement made by shareholders whereby they promise to vote the same way on a particular issue. Also called shareholder agreements and voting agreements.

Breach of Contract

The failure of one party to fulfill any of its contractual obligations without a valid legal reason, leading to possible legal action by the other party.

Chemical Plant

An industrial facility where chemical processes are carried out, especially the manufacture of chemicals or pharmaceuticals.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from personal liability for the corporation's debts and obligations.