Question : Case Study 10:
XYZ Corporation is a large conglomerate with diverse business interests. The management team at XYZ wants to implement control systems to improve financial performance and profitability.
Question:
What would be the last step in the process of controlling for XYZ Corporation?
Option 1: Setting financial targets.
Option 2: Measuring financial performance.
Option 3: Comparing financial results with targets.
Option 4: Taking corrective financial action.
Correct Answer: Taking corrective financial action.
Solution : The correct answer is (d) Taking corrective financial action.
The last step in the process of controlling for XYZ Corporation would be to take corrective financial action based on the comparison of financial results with targets. After comparing the actual financial performance with the predetermined targets, if there are any deviations or discrepancies, the management team would need to take corrective actions to address these issues and bring the financial performance back in line with the desired targets. This step involves making adjustments, changes, or improvements to ensure that financial goals are met and profitability is optimized.
