ManagerialControl.pptVIP

Financial Ratios Debt-equity ratio A leverage ratio that indicates the company’s ability to meet its long-term financial obligations Return on investment (ROI) A ratio of profit to capital used, or a rate of return from capital 16-* Using Financial Ratios Management myopia Focusing on short-term earnings and profits at the expense of longer-term strategic obligations. 16-* Designing Effective Control Systems Establish valid performance standards. Provide adequate information to employees. Ensure acceptability to employees. Maintain open communication. Use multiple approaches. Take action 16-*