Exam 12: Evaluation and Control

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.

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

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business. This is known as

Distinguish between behavior and output controls. Provide examples of each.

A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

ERP software provides instant access to critical information to everyone in the organization from the CEO to the factory floor worker.

Which of the following is not one of the reasons many executives do not conduct long-run performance evaluations, preferring to focus primarily on short-run performance?

Evaluation and control information consists only of performance data.

An advantage of ROI as a measure of performance is that

One of the key reasons for the success of Walmart has been management's use of the company's sophisticated information system to control purchasing decisions.

Enterprise risk management is being adopted because of the increasing amount of environmental uncertainty that can affect an entire corporation.

The use of timely, quantifiable standards guarantees good performance.

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

The long-term evaluation method encourages executives to analyze the long-term implications of present operations on the strategy they have adopted and the operational impact of a strategy on the corporate mission.

What is ERP? What are the three reasons why ERP could fail?

The union of all of a company's major business activities from order processing to production within a single family of software modules is known as

Stickiness and eyeballs are two non-financial performance measures used by Internet business ventures.

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

What is the most commonly used measure of corporate performance (in terms of profits)? Discuss the limitations of using this measure.