Macy's department store cannot exceed a dollar threshold on Black Friday advertising to ensure a return on their investment. What type of control is being used?
A) Steering control system
B) Reaction control system
C) Formal control system
D) Informal control system

Question

Quizplus · Accepted Answer

This is an example of a formal control system, where specific rules, budgets, and standards are set to guide behavior and decisions within an organization. Setting a dollar threshold on advertising is a formal method of controlling costs and ensuring financial objectives are met.

Macy's Department Store Cannot Exceed a Dollar Threshold on Black