In Exercising Financial Control Over Organizations, Managers Should Consider Liquidity

question 37

True/False

In exercising financial control over organizations, managers should consider liquidity, leverage, asset management, and profitability.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the material and labor costs.

Conglomerates

Large corporations that own a collection of different companies across various industries.

Seasonal Nature

Describes fluctuations in business activity, revenue, or profits at certain times of the year due to seasonal factors such as holidays or weather changes.

Fiscal Year Ends

The completion of a one-year, or 12-month, accounting period after which a company determines its financial performance.