How often should a company undertake corporate appraisal? What are the arguments for and against yearly corporate appraisal?
What will be an ideal response?
Corporate appraisal provides a direct measurement of the company’s readiness to interact with the external environment. The three major variables examined—value system of top management, corporate publics, and company resources—are integral in establishing strategy. The frequency varies from company to company, but most companies should undertake corporate appraisal once every six months to two years. Yearly evaluation may be too infrequent for a company attempting to develop strategies in a highly volatile environment, and too often for a company with a firmly established strategy in a stable environment.
You might also like to view...
Which method of preparing the operating activities section of a statement of cash flows reports major classes of gross cash receipts and cash payments for revenues and expenses?
a. The direct method b. The indirect method c. Both the direct method and the indirect method d. Neither the direct method nor the indirect method
External users of accounting information manage and operate the company.
Answer the following statement true (T) or false (F)
A controlling influence over the investee is based on the investor owning voting stock exceeding:
A. 40%. B. 30%. C. 50%. D. 20%. E. 10%.
In waiting line problems, the service rate is assumed to follow a probability distribution known as ______.
a. discrete Poisson distribution b. binomial distribution c. normal distribution d. negative exponential distribution