CH 11

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CHAPTER 11
EVALUATION AND CONTROL
True/False
1.
Top management is often better at the first two steps of the control model than it is in the last three
follow-through steps.
(p.242)
Answer: T
2.
Evaluation and control information consists only of performance data.
Answer: F
(p.243)
3.
Performance is the end result of activity.
Answer: T
(p.243)
4.
Behavior controls specify how something is to be done through policies, rules, standard operating
procedures, and orders from a superior.
Answer: T
ISO 2000 Standards series was developed by the International Standards Association of Geneva,
Switzerland.
Answer: F
(p.243)
5.
(p.245)
6.
ACB is an accounting method for allocating indirect and fixed costs to individual products.
Answer: F
(p.245)
7.
ABC accounting first breaks down pen manufacturing into its activities.
Answer: T
(p.246)
8.
ROI stands for return on incentives.
Answer: F
(p.246)
9.
One advantage of using ROI is that it is a single comprehensive figure influenced by everything
that happens.
Answer: T
10.
Return on equity (ROE) is calculated by dividing total equity by net income.
Answer: F
Shareholder value is the present value of the anticipated future stream of cash flows from the
business plus the value of the company if liquidated.
Answer: T
(p.247)
(p.247)
11.
12.
EVA will never replace ROI as the standard performance measure.
Answer: F
MVA is the difference between the market value of a corporation and the capital contributed by
shareholders and lenders.
Answer: T
(p.248)
(p.249)
13.
The balanced scorecard combines financial measures that tell the results of actions already taken
with operation measures on customer satisfaction, internal processes, and the corporations
innovation and improvement activities.
Answer: T
(p.250)
14.
241
(p.250)
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15.
Management audits have been developed to evaluate activities such as corporate social
responsibility, functional areas such as the marketing department, and divisions such as the
international division, as well as to evaluate the corporation itself.
Answer: T
16.
Standard costs are computed on the basis of historical data.
Answer: T
(p.252)
(p.252)
17.
The revenue center is measured in terms of efficiency.
Answer: F
(p.252)
18.
Benchmarking is a concept that is decreasing in popularity.
Answer: F
(p.254)
19.
The repatriation of profits is the transfer of profits to the parent company.
Answer: T
(p.255)
20.
International transfer pricing is primarily used to evaluate performance.
Answer: F
(p.255)
Multiple Choice
21.
Which one of the following is NOT a part of the evaluation and control of performance?
a.
b.
c.
d.
e.
22.
e.
23.
25.
(p.243)
measurement.
gratuity.
performance.
return on equity.
achievement.
Return on investment (ROI) is appropriate for evaluating the corporation's or division's

a.
b.
c.
d.
e.
(p.243)
immediately notify the board of directors.

change the strategic management model.
know about it so that they can correct the employee activity.
allow sufficient time to pass to verify if it is the process or just the usage that is the
problem.
check the performance data to ensure their accuracy and take two more measurements.
The end result of activity is known as

a.
b.
c.
d.
e.
24.
Establish objectives and strategies.

Determine what to measure.
Establish standards for performance.
Measure actual performance.
Take corrective actions.
If performance data and activity reports indicate undesirable performance as a result of

inappropriate use of the strategic management process, operational managers must
a.
b.
c.
d.
(p.243)
(p.243)
level of social responsibility commitment.

ability to achieve a profitability objective.
present profitability potential.
prospects for favorable future earnings.
commitment to employee development.
Controls that measure variables that influence future results are called
242
(p.245)
a.
b.
c.
d.
e.
26.
Which type of control specifies how something is to be done through policies, rules, standard
operating procedures, and orders from a superior?
a.
b.
c.
d.
e.
27.
29.
30.
31.
(p.245)
sales quotas.
specific cost reduction.
profit objectives.
making sales calls to potential customers.
surveys of customer satisfaction.
All of the following are examples of input controls EXCEPT

a.
b.
c.
d.
e.
(p.245)
following company procedures.

making sales calls to potential customers.
getting to work on time.
following up on sales calls with current customers.
making insubordinate remarks to management.
All of the following are examples of output controls EXCEPT

a.
b.
c.
d.
e.
(p.245)
tactical control
strategic control
output control
functional control
behavior control
All of the following are examples of behavior controls EXCEPT

a.
b.
c.
d.
e.
(p.245)
tactical control
strategic control
output control
functional control
behavior control
The ISO 9000 Standards Series is one example of

a.
b.
c.
d.
e.
(p.245)
tactical control
strategic control
output control
functional control
behavior control
Which type of control specifies what is to be accomplished by focusing on the end result of
behaviors through the use of objectives and performance targets or milestones?
a.
b.
c.
d.
e.
28.
steering controls.
activity controls.
behavior controls.
output controls.
influencing controls.
number of years of education.

number of years of experience.
sales quotas.
level of educational attainment.
strong work ethic.
243
(p.245)
32.
The most comprehensive standard in the ISO 9000 Standards Series is

a.
b.
c.
d.
e.
33.
34.
36.
37.
38.
(p.245)
conglomerate diversification.
concentric diversification.
retrenchment.
divestment.
vertical integration.
Corporations will emphasize all types of controls (output, input, behavior) when they are
following a strategy of
a.
b.
(p.245)
$100,000
$175,000
$200,000
$300,000
$400,000
Corporations will emphasize output controls when they are following a strategy of
a.
b.
c.
d.
e.
(p.245)
Costa Rica.
Canada.
Mexico
The United States.
The European Union.
Cost savings from ISO 9000 approximate _____.

a.
b.
c.
d.
e.
(p.245)
$100,000
$150,000
$200,000
$250,000
$300,000
All of the following nations or trade alliances were cited in the text for having ISO 9000
certification of their suppliers EXCEPT
a.
b.
c.
d.
e.
(p.245)
9000.
9001.
9004.
9002.
9003.
ISO certification costs approximately _____.

a.
b.
c.
d.
e.
35.
9000.
9001.
9004.
9002.
9003.
Which ISO standard relates to inspecting and testing procedures?

a.
b.
c.
d.
e.
(p.245)
conglomerate diversification.
concentric diversification.
244
(p.245)
c.
d.
e.
39.
40.
Activity-based costing is a method of accounting which is very useful in making outsourcing

decisions by doing
(p.245)
a.
total quality management.
b.
value-chain analysis
c.
reengineering.
d.
MBO.
e.
benchmarking.
Activity-based accounting differs from traditional cost accounting in the way it
(p.245)
a.
b.
c.
d.
e.
41.
e.
44.
45.
(p.246)
it is sensitive to book value.

it provides an incentive to use existing assets efficiently.
the time span of concern is short range.
the business cycle strongly affects ROI performance often despite managerial
performance.
it is very sensitive to depreciation policy.
The ratio of net earnings to the amount of common stock is referred to as

a.
b.
c.
d.
e.
(p.246)
it is a single comprehensive figure examining only one facet of the firm.

it provides disincentive to use existing assets efficiently.
it provides a disincentive to acquire new assets.
it is very sensitive to depreciation policy.
it does not provide the basis for common comparison.
An advantage of ROI as a measure of performance is that

a.
b.
c.
d.
(p.246)
EPS
ROE
DPS
ROI
ROVA
A limitation of ROI as a measure of performance is that

a.
b.
c.
d.
e.
43.
allocates direct costs to overhead categories.

tracks allocation decisions.
allocates indirect and fixed costs to individual products.
uses debits and credits.
utilizes ratios to calculate standard costs of individual product categories.
Which is the MOST commonly used measure of corporate performance in terms of profit?
a.
b.
c.
d.
e.
42.
retrenchment.
divestment.
vertical integration.
(p.246)
sales.
EPS.
ROE.
ROI.
ROA.
What measurement is calculated by the ratio of net income to total equity?
245
(p.246)
a.
b.
c.
d.
e.
46.
Which of the following measures does NOT appear in the stakeholder scorecard proposed by
Freeman?
a.
b.
c.
d.
e.
47.
49.
return on assets.
ROVA.
shareholder value.
earnings per share.
ROI.
ROI.
EPS.
ROE.
EVA.
MVA.
The measure which calculates the stock market's estimate of the net present value of the firm's
past and expected capital investment projects is called
a.
b.
c.
d.
e.
51.
(p.248)
The measure which calculates the after-tax operating profit minus the total cost of capital is called (p.249)
a.
b.
c.
d.
e.
50.
(p.248)
shareholder value
basic earning power
price/earnings ratio
profit margin on sales
return on assets
The present value of the anticipated future stream of cash flows from the business plus the value
of the company if liquidated is referred to as
a.
b.
c.
d.
e.
(p.249)
sales ($ and volume)

EPS
ROE
number of employee grievances
profits
Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable
indicators of a corporation's economic value, which method of corporate performance is now
preferred?
a.
b.
c.
d.
e.
48.
sales
EPS
ROE
ROI
ROA
ROI.
EPS.
ROE.
EVA.
MVA.
What is the first step in calculating MVA?

a.
b.
(p.250)
(p.250)
Add all of the capital that has been put into a company.
Reclassify certain accounting expenses.
246
c.
d.
e.
52.
Which of the following is NOT one of the areas in which goals or objectives should be developed
for use in the balanced scorecard approach?
a.
b.
c.
d.
e.
53.
b.
c.
d.
e.
critical success factors.

key performance measures.
strategic factors.
behavioral measures.
responsibility centers.
Providing appropriate feedback on corporate performance to the board before key

decision points.
Demonstrating executive leadership.
Achieving overall corporate measures such as ROI, ROE, EPS, and shareholder value.
Training new employees in the corporate culture.
Establishing strategic direction for the firm.
Which of the following is NOT descriptive of responsibility centers?

a.
b.
c.
d.
e.
56.
(p.251)
Which one of the following is NOT one of the areas in which a board of directors should evaluate
the effectiveness of the CEO?
(p.251)
a.
55.
(p.251)
customer
innovation and learning
financial
stakeholder
internal business perspective
The balanced scorecard approach to evaluation and control assigns to each goal/objective in an
area one or more measures that are each essential for achieving a desired strategic option. These
measures are called
a.
b.
c.
d.
e.
54.
Total the value of all outstanding stock, using current stock price.
Conduct a S.W.O.T. analysis.
Maximize earning potential.
They are used to isolate a unit so that it can be evaluated separately from the rest of the
corporation.
Each responsibility center has its own budget and is evaluated on its use of budgeted
resources.
The responsibility center coordinates all the functional areas and project
developments to implement the strategic decision plan.
The center uses resources to produce a service or a product.
A responsibility center is headed by the manager responsible for the center's
performance.
A type of responsibility center which is used primarily in manufacturing facilities based on

historical cost data is a(n)
a.
b.
c.
d.
e.
(p.252)
investment center.
revenue center.
expense center.
profit center.
standard cost center.
247
(p.252)
57.
The comparison of the expected cost of production against the actual cost of production typically
occurs in the
a.
b.
c.
d.
e.
58.
59.
61.
62.
63.
(p.253)
investment center.
revenue center.
expense center.
profit center.
A type of responsibility center which is typically established whenever an organizational unit has
control over both its resources and its products or services is a(an)
a.
(p.253)
investment center
revenue center
profit center
standard cost center
expense center
A responsibility center which is measured in terms of the difference between revenues measured
in production and expenditures measured in resources is a(an)
a.
b.
c.
d.
e.
(p.253)
investment center.
revenue center.
expense center.
profit center.
What centers have budgets prepared for engineered expenses and for discretionary expenses?
a.
b.
c.
d.
e.
(p.252)
investment center.
revenue center.
expense center.
profit center.
A responsibility center which measures resources in dollars without consideration of service or

product costs is called a(n)
a.
b.
c.
d.
e.
(p.252)
investment center
revenue center
profit center
expense center
A type of responsibility center which is primarily used in sales regions is a(an)

a.
b.
c.
d.
e.
60.
investment center.
revenue center.
profit center.
expense center.
What centers are judged for effectiveness rather than efficiency?

a.
b.
c.
d.
e.
(p.252)
investment center.
248
(p.253)
b.
c.
d.
e.
64.
What type of center should be used when a company is organized into divisions of separate
product lines?
a.
b.
c.
d.
e.
65.
d.
e.
investment center
revenue center
expense center
profit center
(p.253)
investment center
expense center
profit center
revenue center
The continual process of measuring products, services, and practices against the toughest
competitors or those companies recognized as industry leaders is
a.
(p.253)
revenue center
expense center
investment center
profit center
Multidivisional corporations tend to use what type of responsibility center?

a.
b.
c.
d.
e.
69.
the price which the wholesaler pays.

the price which the customer pays after mark-up.
the final price at which a product sells after all entities have included their value added
charges.
the amount that a standard cost center charges to a profit center in a
vertically-integrated firm.
the price the retailer pays to the manufacturer.
Return on investment (ROI) is the most widely used measure of performance in what
responsibility center?
a.
b.
c.
d.
e.
68.
(p.253)
Which type of responsibility center will a multidivisional corporation typically emphasize through
the use of ROI?
(p.253)
a.
b.
c.
d.
e.
67.
(p.253)
profit center
investment center
revenue center
expense center
A transfer price is
a.
b.
c.
66.
revenue center.
expense center.
profit center.
total quality management.
249
(p.254)
b.
c.
d.
e.
70.
Which of the following is NOT one of the steps followed in the benchmarking process?
a.
b.
c.
d.
e.
71.
b.
(p.255)
technology transfer.
activity-based costing.
transfer pricing.
repatriation of profits.
transnational funding.
(p.256)
budgets.
earnings per share.
rate of return.
currency-adjusted cash flow.
historical comparisons.
A multi-domestic MNC should use what type of controls on its foreign units?
a.
(p.254)
$100,000
$200,000
$300,000
$400,000
$500,000
The control measurement most used to evaluate foreign operations of an MNC is

a.
b.
c.
d.
e.
75.
10%
30%
50%
70%
90%
Transferring profits from a foreign subsidiary to the parent corporation through dividends,
royalties, or management fees is called
a.
b.
c.
d.
e.
74.
Develop tactical programs for closing performance gaps.

Implement tactical programs, measure the results, and compare the results with those of
the best-in-class company.
Link parallel activities instead of integrating their results.
Identify the area or process to be examined.
Calculate the differences among the company's performance measurements and those of
the best-in-class company.
A benchmarking study may cost approximately _____, involving 30 weeks of effort.

a.
b.
c.
d.
e.
73.
(p.254)
A study by Bain & Company revealed what percentage of companies using benchmarking in some
manner?
(p.254)
a.
b.
c.
d.
e.
72.
benchmarking.
action planning.
reengineering.
management by objectives.
Management should be given considerable latitude, but be required to meet some

predetermined performance targets.
Management should use a matrix structure allowing some limited autonomy of the
foreign unit.
250
(p.256)
c.
d.
e.
76.
An MNC with a global perspective should use what type of controls on its foreign units?
a.
b.
c.
d.
e.
77.
activity-based costing.
transfer pricing.
spreadsheet software.
R/3 software system.
transnational software integrator.
(p.256)
enterprise resource planning.

enterprise strategic planning.
information system planning.
united resource planning.
united strategic planning.
Which one of the following is NOT one of the reasons why many executives do not conduct
long-run performance evaluations while preferring to focus primarily on short-run performances?
(p.258)
a.
b.
c.
d.
e.
80.
Management should be given considerable latitude, but be required to meet some

predetermined performance targets.
Management should use a matrix structure allowing some limited autonomy of the
foreign unit.
Management needs to exert tight controls over its many units using a centralized
strategic operational decision-making format.
Management should use a functional approach assigning distinct and separate
responsibilities to each department throughout the MNC.
Management should use a divisional approach assigning goals and targets for each
product-group on all its foreign units collectively.
The union of all of a companys major business activities from order processing to production
within a single family of software modules is known as
a.
b.
c.
d.
e.
79.
(p.256)
The complex software system which integrates and automates order taking, credit checking,
payment verification, and book balancing for a multinational corporation's many operations and is
becoming the business information systems' global standard is
(p.256)
a.
b.
c.
d.
e.
78.
Management needs to exert tight controls over its many units using a centralized strategic
operational decision-making format.
Management should use a functional approach assigning distinct and separate
responsibilities to each department throughout the MNC.
Management should use a divisional approach assigning goals and targets for each
product-group throughout the MNC.
They do not realize the importance of long-run evaluations.

They are not personally evaluated on a long-term basis.
They believe short-run considerations are more important than long-run considerations.
They do not have the time to make a long-run analysis.
They do not believe in strategic planning.
Which of the following is NOT a disadvantage of short-term emphasis?

a.
Rather than striving to meet the organization's long-term goals, managers tend to focus
their efforts only on factors that have positive short-term effects which may be
inconsistent with corporate objectives.
251
(p.258)
b.
c.
d.
e.
81.
What term describes when activities originally intended to help managers attain corporate
objectives become ends in themselves or are adapted to meet ends other than those for which they
were intended?
(p.258)
a.
b.
c.
d.
e.
82.
b.
c.
d.
e.
a division or functional unit views itself as a separate entity and refuses to cooperate with
other divisions or units in order to keep its performance measures at a high level.
there is a failure to produce at or near full capacity.
individuals are placed into positions not suited to their abilities.
managers tend to focus more of their attention on those aspects which are
measurable than on those which are not.
managers concentrate too much on short-term performance objectives.
b.
c.
d.
e.
(p.259)
a division or functional unit views itself as a separate entity and refuses to cooperate
with other divisions or units in order to keep its performance measures at a high
level.
there is a failure to produce at or near full capacity.
individuals are placed into positions not suited to their abilities.
managers tend to focus more of their attentions on those aspects which are measurable
than on those which are not.
managers concentrate too much on short-term performance objectives.
If marketing attains its goal while production costs are raised for the manufacturing department,
the end result of marketings achievements and manufacturings cost increases reflects the term
a.
b.
c.
(p.259)
Sears, Roebuck, & Co.

J.C. Penney
Neiman Marcus
Saks
Macys
Suboptimization occurs when

a.
85.
(p.258)
The text cited the organization of _____ as improving employee productivity by tying
performance to rewards.
a.
b.
c.
d.
e.
84.
economic rationality
minimal acceptable behavior
goal displacement
closed system thinking
trained incapacity
Behavior substitution occurs when

a.
83.
To achieve short-term goals, managers can often manipulate financial measurements to

report what they want them to be and not necessarily the actual situation.
To gain control over "creative accounting" practices caused by reporting distortions,
burdensome accounting-control systems must be instituted stifling overall creativity and
flexibility within the organization.
Heavy emphasis on short-term planning tends to decrease an organization's technological
standing which is detrimental to achieving long-term objectives.
Managers are often evaluated on the basis of an annual ROI.
behavior substitution.
suboptimization.
resource allocation.
252
(p.259)
d.
e.
86.
Which of the following is NOT a guideline for proper control?

a.
b.
c.
d.
e.
87.
89.
90.
91.
(p.260)
management of the corporate portfolio

achieving the business unit's mission
short-term financial as well as long-term strategic performance
compensation of comparable firms in the industry
degree of risk involved in managing the portfolio
The typical CEO pay package is composed of _____ long-term incentives.

a.
b.
c.
d.
e.
(p.260)
corporations in multidomestic industries.

those companies with a corporate culture which supports the company's strategies.
those companies with a strongly-held bureaucratic corporate culture.
corporations in global industries.
the poorest managed companies.
Which of the following criteria is NOT an appropriate way to link executive compensation to
corporate performance?
a.
b.
c.
d.
e.
(p.259)
strategic factors.
profitability ratios.
strong managerial leadership.
critical success factors.
key performance measures.
According to Peter and Waterman in their book, In Search of Excellence, which type of
companies have only a few formal objective controls?
a.
b.
c.
d.
e.
(p.259)
Control should involve only a minimum of information.

Long-term as well as short-term controls should be used.
Controls should be timely so that corrective actions can be taken before it is too late.
Controls should measure all activities in order to be comprehensive.
Emphasize the reward of meeting or exceeding standards rather than punishment for
failing to meet standards.
Those few things which must go well to ensure corporate success, the 20% of the factors that
determine 80% of the results, are called
a.
b.
c.
d.
e.
88.
resource optimization.
strategy optimization.
(p.260)
16%
36%
27%
21%
10%
A survey of 600 business units found that compensation programs emphasizing bonuses and other
incentives were most used in those units emphasizing
(p.260)
a.
b.
c.
d.
e.
stability strategies.
retrenchment strategies.
cooperative strategies.
international strategies.
growth strategies.
253
92.
An approach to better match rewards to the accomplishment of strategic objectives is

a.
b.
c.
d.
e.
93.
94.
96.
97.
(p.260)
strategic-funds method
segmentation method
long-term evaluation method
individual evaluation method
weighted-factor method
Using the weighted-factor approach to strategic incentive management in a medium growth

environment, what factor should receive the most weight?
a.
b.
c.
d.
e.
(p.260)
company cars.
company stock.
health insurance.
retirement plans.
vacations.
Which method of matching rewards to the accomplishment of strategic objectives encourages

executives to look at developmental expenses as being different from those expenses required for
current operations?
a.
b.
c.
d.
e.
(p.260)
segmentation method
According to the text, based on solid long-term performance, a company executive might be
promised incentives such as
a.
b.
c.
d.
e.
(p.260)
segmentation method
Which method of matching rewards to the accomplishment of strategic objectives compensates

managers for achieving objectives set over a multi-year period?
a.
b.
c.
d.
e.
95.
return on investment.
year-end bonuses.
zero base budgeting.
weighted-factor method.
return on assets.
Which method of matching rewards to the accomplishment of strategic objectives is particularly

appropriate for measuring and rewarding the performance of top SBU managers and group-level
executives when performance factors and their importance vary from one SBU to another?
a.
b.
c.
d.
e.
(p.260)
return on assets
cash flow
strategic-funds programs
market-share increase
all factors should receive equal weights
254
(p.260)
98.
The strategic audit is really a checklist based upon

a.
b.
c.
d.
e.
99.
100.
(p.262)
management audit.
accounting audit.
financial audit.
environmental audit.
strategic audit.
In a strategic audit, which one of the following is NOT a part of the corporation's internal
environment?
a.
b.
c.
d.
e.
101.
the strategic decision-making process.

strategic factors.
industry analysis.
financial statements.
competitive intelligence.
The strategic decision-making process is made operational through the

a.
b.
c.
d.
e.
(p.262)
(p.262)
corporate structure
corporate culture
corporate task environment
corporate resources
none of these
Which one of the following is NOT one of the key considerations of evaluation and control?
(p.262)
a.
b.
c.
d.
e.
102.
At _____, forty employees were fired for visiting pornographic Web sites.
a.
b.
c.
d.
e.
103.
Are avenues of feedback in place to report on implementation activities and

performance?
Is the information timely?
Are appropriate standards and measures being used?
Are reward systems capable of recognizing and rewarding good performance?
What policies should be developed or revised to guide effective implementation?
Motorola
Sears
Xerox
Corning
Cisco
Intelligence agencies from different counties use a satellite communications monitoring system
which is called
a.
b.
c.
d.
e.
(p.262)
Echelon.
Epicurean.
Epicenter.
Ensign.
Eurydice.
255
(p.263)

CH 11

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Return on investment (ROI) is appropriate for evaluating the corporation's or division's

immediately notify the board of directors.

The end result of activity is known as

Establish objectives and strategies.

If performance data and activity reports indicate undesirable performance as a result of

level of social responsibility commitment.

All of the following are examples of input controls EXCEPT

following company procedures.

All of the following are examples of output controls EXCEPT

All of the following are examples of behavior controls EXCEPT

The ISO 9000 Standards Series is one example of

number of years of education.

The most comprehensive standard in the ISO 9000 Standards Series is

Cost savings from ISO 9000 approximate _____.

ISO certification costs approximately _____.

Which ISO standard relates to inspecting and testing procedures?

Activity-based costing is a method of accounting which is very useful in making outsourcing

it is sensitive to book value.

The ratio of net earnings to the amount of common stock is referred to as

it is a single comprehensive figure examining only one facet of the firm.

An advantage of ROI as a measure of performance is that

A limitation of ROI as a measure of performance is that

allocates direct costs to overhead categories.

What measurement is calculated by the ratio of net income to total equity?

sales ($ and volume)

What is the first step in calculating MVA?

critical success factors.

Providing appropriate feedback on corporate performance to the board before key

Which of the following is NOT descriptive of responsibility centers?

A type of responsibility center which is used primarily in manufacturing facilities based on

A responsibility center which measures resources in dollars without consideration of service or

A type of responsibility center which is primarily used in sales regions is a(an)

What centers are judged for effectiveness rather than efficiency?

Multidivisional corporations tend to use what type of responsibility center?

the price which the wholesaler pays.

total quality management.

The control measurement most used to evaluate foreign operations of an MNC is

Develop tactical programs for closing performance gaps.

A benchmarking study may cost approximately _____, involving 30 weeks of effort.

Management should be given considerable latitude, but be required to meet some

enterprise resource planning.

Management should be given considerable latitude, but be required to meet some

They do not realize the importance of long-run evaluations.

Which of the following is NOT a disadvantage of short-term emphasis?

Sears, Roebuck, & Co.

Suboptimization occurs when

Behavior substitution occurs when

To achieve short-term goals, managers can often manipulate financial measurements to

Which of the following is NOT a guideline for proper control?

management of the corporate portfolio

The typical CEO pay package is composed of _____ long-term incentives.

corporations in multidomestic industries.

Control should involve only a minimum of information.

An approach to better match rewards to the accomplishment of strategic objectives is

Using the weighted-factor approach to strategic incentive management in a medium growth

Which method of matching rewards to the accomplishment of strategic objectives encourages

Which method of matching rewards to the accomplishment of strategic objectives compensates

Which method of matching rewards to the accomplishment of strategic objectives is particularly

The strategic audit is really a checklist based upon

the strategic decision-making process.

The strategic decision-making process is made operational through the

Are avenues of feedback in place to report on implementation activities and