Through Careful Monitoring of the Financial Budgets of a Firm,managers

question 89

Multiple Choice

Through careful monitoring of the financial budgets of a firm,managers can detect potential problems in reaching their financial goals and take actions to reverse the problem.This is an example of the management function of

• A)planning.
• B)controlling.
• C)leading.
• D)organizing.
• E)budgeting.

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Definitions:

Income Statement

A report detailing income and outgoings of a business for a set time frame, culminating in a profit or deficit.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt from its operating earnings.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Market Price

The ongoing market value at which one can buy or sell an asset or service.