Which of the following statements about financial controls is false?
A) They include goals such as becoming the market leader in a given product-market.
B) They are often used by firms that have relied on unrelated diversification.
C) They focus on gaps between desired financial outcomes and those actually produced by a firm.
D) International firms that have a strict focus on only financial controls risk encouraging a short-term perspective.

Question

Quizplus · Accepted Answer

Financial controls focus on achieving desired financial outcomes and closing gaps between actual and desired financial performance. They do not include goals related to becoming a market leader in a specific product-market, which is a strategic goal.

Which of the Following Statements About Financial Controls Is False