Page 390 - Business Principles and Management

Chapter 14 • Implementing and Controlling

14.4 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. Which of the following is not one of the actions managers should
take if they discover that performance is not meeting standards?
a. Take steps to improve performance.
b. Change policies and procedures.
c. Revise the standard.
d. Each of the actions is appropriate.
2. The best credit policy for a company is to
a. never make purchases on credit
b. charge very high interest rates to customers to increase profits
c. only buy on credit when it will lose money if the purchase isn’t
made
d. pay for credit purchases well before payment is due

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Explain the meaning of the statement “Planning is usually not
exact” as it applies to evaluating performance and standards.
4. What recommendations would you make to a business to increase
computer and Internet security for the business
and its customers?

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