Which of the Following Observations Best Explains Why the Control

question 83

Multiple Choice

Which of the following observations best explains why the control function is important?

• A)An effective control system includes employee empowerment.
• B)An effective control system assures that the organization will meet or exceed its goals.
• C)An effective control system is the only way managers know whether organizational goals are being met.
• D)Organizational strategies are formed during the controlling stage.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Bonds Payable

Long-term liabilities representing money borrowed by an entity that must be repaid to creditors at a future date.

Financing Activities

Transactions related to raising capital, repaying investors, and restructuring the financial basis of the entity in the statement of cash flows.

Treasury Stock

Stock that a corporation has once issued and then reacquires.