Scenario A: Ronaldo Is Doing Some Management Consulting for Three

question 117

Multiple Choice

Scenario A: Ronaldo is doing some management consulting for three companies.Safety Solutions Inc.is a large corporation that was established in the 1960s.It produces safety mechanisms for industrial machinery.The organization uses a strict set of rules and regulations with its workforce and tracks a large amount of data using statistical techniques.Eastern Plains Employment Associates is a network of regional employment centers that was started eight years ago.Its management uses a control system that ties salaries to prevailing salary standards,and the center directors are evaluated on the basis of the profitability of their centers.Resources are moved between centers on the basis of transfer prices.Ocean Innovations Inc.is a software company.Its control process is very future oriented.It likes to prevent problems before they arise,using policies,procedures,and rules.
-Which of the following control systems does Ocean Innovations utilize?

• A)feedback control
• B)market control
• C)clan control
• D)feedforward control
• E)concurrent control

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Definitions:

Income-Sharing

A strategy where income is distributed between stakeholders, partners, or employees based on an agreed-upon formula, often used to motivate and reward.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest are deducted from total revenue.

Beginning Capital

The amount of capital or equity held by a business or individual at the start of an accounting period.

Capital Balances

Capital balances reflect the amount of money that owners have invested in a company, including retained earnings and additional contributions.