LESSON 12

Question 1

It is a major management function that contributes to the achievement of organizational goals by checking errors and addressing deviations from established performance standards

Answer 1

Controlling

Question 2

It is an ongoing process that involves members at all levels of the organization

Answer 2

Controlling

Question 3

These are both closely related management functions

Answer 3

Planning and controlling

Question 4

This type of control anticipates the occurrence of possible problems so that preventive measures can be implemented before the actual operation

Answer 4

Feedforward control

Question 5

This type of control is implemented while the activity is in progress

Answer 5

Concurrent control

Question 6

This type of control is done after the activity

Answer 6

Feedback control

Question 7

This technique entails establishing procedures and policies that ensure efficiency in the activities of the company

Answer 7

Administrative control

Question 8

This involves assigning an employee to take responsibility in completing a task

Answer 8

Delegation

Question 9

This type of control involves the collection and analysis of information in order to make decisions

Answer 9

Evaluation

Question 10

These are information on hoe money is spent and how profits are maximized by the company

Answer 10

Financial reports

Question 11

Messures the company’s ability to meet its current debt obligations

Answer 11

Liquidity ratio

Question 12

Access the organization’s used of debt to finance its assets to and meet the interest payments on debts

Answer 12

Leverage ratio

Question 13

Measures the efficiency of the company in using its assets to met its various financial obligations and convert its various accounts to cash

Answer 13

Activity ratio

Question 14

Measures the efficiency of the company in generating profits

Answer 14

Profitability ratio

Question 15

This provides a general impression of employee performance

Answer 15

Performance appraisal

Question 16

Approach that evaluates employees based on certain traits like honesty, flexibility, creativity, and punctuality

Answer 16

Trait approach

Question 17

This approach compares the performance of employees set by the company

Answer 17

Achievement-based approach

Question 18

This approach involves employees being evaluated by a group of people

Answer 18

Group approach

Question 19

These form part of the internal control of an organization as they guide behavior in the workplace

Answer 19

Policies and procedures

Question 20

This control method relies on the quality of products and services as a basis for establishing performance standards, monitoring results, and comparing results with the standards

Answer 20

Quality control

Question 21

ISO

Answer 21

International Organization Standardization

Question 22

These are important tools that determine whether the company is on track toward achieving its financial goals

Answer 22

Accounting/Financial Controls

Question 23

It provides a summary of the company’s financial position over a period of time

Answer 23

Balance sheet

Question 24

Things or resources that the company owns

Answer 24

Assets

Question 25

Refer to the sales of goods or services that are not yet collected, or sales still kn credit

Answer 25

Accounts receivable

Question 26

Includes the cost of raw materials, work-in-process, and finished goods

Answer 26

Inventory

Question 27

Assets that include cash on hand, cash deposited in banks, prepaid or advance payments not yet used, accounts receivable and inventory

Answer 27

Current assets

Question 28

The value of the shares issued by a company

Answer 28

Equity

Question 29

Assets considered as debt, unsettled transactions or other monetary obligations owed to a company by its debtors of customers

Answer 29

Receivable

Question 30

These include assets such as land, buildings, leasehold improvements, equipment, furniture, and fixtures, delivery trucks, machinery, and other capital owned by the company

Answer 30

Property, plant, and equipment

Question 31

Refers to assets that do not have physical substance and may be hard to evaluate

Answer 31

Intangible assets

Question 32

These are the obligations of the company to creditors for past transactions such as acquisition of raw materials and other debts

Answer 32

Liabilities

Question 33

These liabilities are usually due within one year

Answer 33

Current liabilities

Question 34

These Lieblings have a prescribed period of more than a year

Answer 34

Long-term liabilities

Question 35

It is the amount of loans due based on a written agreement or promise to pay

Answer 35

Notes payable

Question 36

It refers to the obligations of the company to supplies without a written promissory note and are classified as current liability

Answer 36

Accounts payable

Question 37

This is a current liability that is specific to the Philippines

Answer 37

SSS/Philhealyh payable

Question 38

It shows the amount the company should remit as taxes to the environment

Answer 38

Income taxes payable

Question 39

The amount due to the amount due to the employees but are not yet given as of the date of balance sheet

Answer 39

Salaries payable

Question 40

The amount of interest the company owes from proceeds of a loan that is due as of the date of the balance sheet

Answer 40

Interest payable

Question 41

It shows the amount of capital the owners of the business have invested

Answer 41

Owner’s equity or stockholder’s equity

Question 42

This represents ownership of the corporation

Answer 42

Common stock

Question 43

This is a special class of stock whose holders are given preference in the distribution of dividends before the common stockholders

Answer 43

Preferred stock

Question 44

This is the net income of the corporation less dividends

Answer 44

Retained earnings

Question 45

Standard formula for determining the financial status of a company

Answer 45

Assets = Liabilities + Owner’s Equity

Question 46

This reports profits earned or lesses incurred by the company over a given period

Answer 46

Income statement

Question 47

This is the income from primary activities such as the production and selling of goods on the part of the manufacturer

Answer 47

Revenue

Question 48

Refers to revenue gained from the sale of goods by retailers, distributors, manufacturers, and wholesalers

Answer 48

Sales revenue

Question 49

Comes from secondary activities unrelated to the main business like rent from an idle warehouse or garage

Answer 49

Other revenue

Question 50

These are costs incurred in the operation of the business such as salaries and wages of employees;

Answer 50

Expenses

Question 51

The income statement lists the revenue and expenses incurred by the company, and the total expenses is subtracted from the total revenues

Answer 51

Net income

Question 52

Indicates that expenses are less than the income or total revenue at a given period

Answer 52

Profit

Question 53

This happens when the expenses are greater that the revenue

Answer 53

Lose

Question 54

Formula for net income

Answer 54

Net income = Revenues - Expenses

Question 55

This refers to the processes implemented to control the formulation and execution of strategic plans

Answer 55

Strategic control

Question 56

This market tool evaluates the extent and quality of customer relations, how the marketing function is integrated with other functions of the organization, and how well marketing activities and functions are coordinated

Answer 56

Marketing effectiveness