Question 1

________ is a measure of how readily a company can use its assets to generate profits.

Accepted Answer

Profitability is the measure of how easily a company can use its assets to generate profits, indicating the efficiency in using its resources to make money.

Question 2

________ is a measure of an organization's ability to meet its current debt obligations.

Accepted Answer

Liquidity refers to the ability of an organization to meet its short-term debt obligations. It measures the organization's ability to convert its assets into cash quickly to pay off its debts without affecting its operations. A high level of liquidity indicates that the organization has better financial stability and can withstand unexpected financial situations.

Question 3

All of the following are important in efforts to protect information in an organization EXCEPT ________.

Accepted Answer

Search engines are not directly related to protecting information in an organization, while firewalls, encryption, and data backups are all important measures for maintaining information security.

Question 4

When a company's scorecard is not balanced, it usually tends to overemphasize the area that ________.

Accepted Answer

When a company's scorecard is not balanced, it tends to overemphasize the area that best matches its organizational style and philosophy. This is because the company is more comfortable and familiar with this area, and therefore may prioritize it over other important areas.

Question 5

________ is a measure of an organization's ability to meet its current debt obligations.

Accepted Answer

The answer of ________ is a measure of an organization's...

Question 6

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.Which of the following is the most reasonable action for the company to take?

Accepted Answer

It is important for the company to understand what the expenses were for before taking any action. This will help the company identify any patterns or trends in their spending and make informed decisions about how to revise their budget or adjust their freelancer contracts. Simply ignoring the expenses or firing people without understanding the root cause is not a responsible course of action. While revising the budget may be necessary, it should be based on a thorough analysis of the expenses and their impact on the company's overall financial health.

Question 7

One advantage of feedback control over other forms of control is that it lets managers focus on ________.

Accepted Answer

Feedback control allows managers to assess the effectiveness of their planning efforts by comparing actual results with planned objectives, enabling them to make necessary adjustments.

Question 8

When feedback control shows that planning goals and actual performance were dramatically different, the most likely conclusion is that ________.

Accepted Answer

When feedback control shows a significant discrepancy between planning goals and actual performance, it is most likely that the planning was not on-target. This suggests the need for a revision or adjustment of the planning goals to align them more closely with the actual performance. It is less likely that the performance measurements were unreliable, as this would require multiple sources of data to be inaccurate. The conclusion that planning was on-target is contradicted by the feedback control results, indicating a need for improvement. The suggestion that goals do not need to be changed ignores the information provided by the feedback control and potentially perpetuates the problem.

Question 9

When a budget is formulated, it is being used as a(n)________ tool.

Accepted Answer

When a budget is formulated, it is used primarily as a planning tool to help an organization allocate resources and prioritize expenses for a specific period of time. While it can also be used for controlling expenses, its primary purpose is to guide planning efforts.

Question 10

An advantage of feedback control is that it improves ________.

Accepted Answer

A) Though feedback control may marginally or indirectly improve productivity, relations between employees, or relations between managers and employees, none of these effects has been identified as a primary benefit of feedback control. Motivational improvements, on the other hand, have definitely been seen as the result of feedback, making "motivation" the correct response. Feedback gives workers a view of how well they are doing and what they need to do to improve, so it increases motivation to attain that improvement.

Question 11

When a budget is used for controlling, it provides ________ against which resource consumption can be compared.

Accepted Answer

Quantitative standards are measurable and provide a specific number or amount that can be used to compare actual results to expected results. Budgets are typically expressed in monetary values, making them a quantitative standard to measure resource consumption against.

Question 12

A company looks at its expenses and finds that its electricity costs have increased, exceeding the budget by 20 percent.Which of the following would be most likely to require immediate action on the part of the company?

Accepted Answer

The answer of A company looks at its expenses and...

Question 13

Managers exert financial control on an organization using ________ analysis.

Accepted Answer

Ratio analysis involves evaluating a company's financial performance by analyzing its financial statements, such as the balance sheet and income statement, using ratios and benchmarks to compare the company's performance over time and against its competitors. Budget analysis involves comparing actual financial results to budgeted amounts, identifying variances, and taking corrective action to improve financial performance. Both of these types of financial analysis are essential for managers to exert financial control over an organization.

Question 14

A balanced scorecard approach creates goals in four key performance areas and assesses ________.

Accepted Answer

B) A balanced approach sets goals in four performance areas-financial, customer, internal processes, and people/innovation/growth-and assesses how well balanced the company's performance is, making "whether all four goals are met equally" the correct response and eliminating all other responses.

Question 15

________ is a measure of an organization's ability to meet its current debt obligations.

Accepted Answer

The answer of ________ is a measure of an organization's...

Question 16

In general, the greater the distance between the home office of a global company and its branch, the ________.

Accepted Answer

When the distance between the home office and branch is greater, it becomes difficult to maintain regular communication and oversight. This requires a more formalized system of controls to ensure that the branch is operating in accordance with the company's policies and procedures.

Question 17

A household that cuts back on supermarket spending after going overbudget on its food budget is using the budget as a(n)________.

Accepted Answer

The household is using their budget as a controlling tool to monitor their spending and make adjustments when necessary to stay within their budget.

Question 18

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.This is an example of _______.

Accepted Answer

The situation described is an example of using a budget for monitoring and controlling. The company set a budget for its freelancer expenses, but those expenses exceeded the budget by 25 percent. The company is using this information to monitor and control its spending, likely by investigating why the expenses increased and taking steps to reduce them in the future.

Question 19

A family that is using a computer program to create a formal household budget is using the budget as a(n)________.

Accepted Answer

A household budget is typically used as a planning tool to help a family set financial goals and make decisions about how to allocate their income. While it can also be used as a controlling tool to monitor spending and ensure that the family stays within their budget, the primary purpose is to plan ahead and make informed choices. Organizing and leading are not typically associated with the use of a household budget.

Question 20

A management information system (MIS)provides managers with ________ data.

Accepted Answer

A management information system (MIS) provides managers with analyzed and processed data, which is organized and presented in a way that helps them make informed decisions for their organization. Raw data is not useful for decision-making until it has been processed and analyzed, so options B and C are not the best choices. Option D is not specific enough, as numerical data can be either raw or processed.

Quiz 14: Foundations of Control

________ is a measure of how readily a company can use its assets to generate profits.

________ is a measure of an organization's ability to meet its current debt obligations.

All of the following are important in efforts to protect information in an organization EXCEPT ________.

When a company's scorecard is not balanced, it usually tends to overemphasize the area that ________.

________ is a measure of an organization's ability to meet its current debt obligations.

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.Which of the following is the most reasonable action for the company to take?

One advantage of feedback control over other forms of control is that it lets managers focus on ________.

When feedback control shows that planning goals and actual performance were dramatically different, the most likely conclusion is that ________.

When a budget is formulated, it is being used as a(n) ________ tool.

An advantage of feedback control is that it improves ________.

When a budget is used for controlling, it provides ________ against which resource consumption can be compared.

A company looks at its expenses and finds that its electricity costs have increased, exceeding the budget by 20 percent.Which of the following would be most likely to require immediate action on the part of the company?

Managers exert financial control on an organization using ________ analysis.

A balanced scorecard approach creates goals in four key performance areas and assesses ________.

________ is a measure of an organization's ability to meet its current debt obligations.

In general, the greater the distance between the home office of a global company and its branch, the ________.

A household that cuts back on supermarket spending after going overbudget on its food budget is using the budget as a(n) ________.

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent.This is an example of _______.

A family that is using a computer program to create a formal household budget is using the budget as a(n) ________.

A management information system (MIS) provides managers with ________ data.