In the Context of the Planning Process, Which of the Following

question 92

Multiple Choice

In the context of the planning process, which of the following statements is true of the final step that involves monitoring and controlling performance?

• A) Monitoring and controlling performance is not as important as the other steps in the planning process.
• B) Managers must continually monitor the performance of their work units against the unit's goals and plans.
• C) It is the first step taken up by managers in the planning process.
• D) Managers need to re-start the planning process if plans are implemented improperly.
• E) Managers consider monitoring and controlling performance as the most important step in the planning process.

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Definitions:

Direct Method

A cash flow statement presentation method that shows actual cash flows from operating activities, detailing specific sources and uses of cash, as opposed to the indirect method which adjusts net income for non-cash transactions.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an entity.

Marketable Securities

Financial instruments that are easily convertible into cash and are therefore considered very liquid.