Financial Accounting
Financial Accounting
5th Edition
ISBN: 9781618531650
Author: Thomas Dyckman
Publisher: Cambridge Business Publishers
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Chapter 1, Problem 1Q
To determine

Identify the three major business activities of company and explain each activity.

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Listed below are the three functions of the management of an organization.1. Planning 2. Directing 3. ControllingIdentify which of the following statements best describes each of the above functions. (a)    ControllingDirectingPlanning  requires management to look ahead and to establish objectives. A key objective of management is to add value to the business.       (b)    ControllingDirectingPlanning  involves coordinating the diverse activities and human resources of a company to produce a smooth-running operation. This function relates to the implementation of planned objectives.       (c)    ControllingDirectingPlanning  is the process of keeping the activities on track. Management determines whether goals are being met and what changes are necessary when there are deviations.
Based on your understanding, compare and contrast the three major forms of business organization which are financing, investing, and operating department. Also, relate the scope of the role of a financial manager within these business organization.
According to the COSO ERM framework, which of following best describes the difference between strategy and business objectives?   A. Strategy is the plan to achieve business objectives. B. Business objectives are the steps to achieve strategy. C. Strategy is the organization’s core purpose, and business objectives are what the organization aspires to achieve over time. D. Business objectives are broader in scope than strategy.
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