Through careful monitoring of the financial budget 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.

Question

Quizplus · Accepted Answer

Controlling involves monitoring performance, comparing it with goals, and taking corrective action as needed. In this scenario, monitoring the financial budget and taking actions to reverse potential problems is an example of controlling. Planning involves setting goals and determining how to achieve them. Leading involves motivating and directing employees. Organizing involves arranging resources to achieve goals. Budgeting is a component of the financial planning process.

Through Careful Monitoring of the Financial Budget of a Firm