Explanation

In accounting, an economic event occurs when a transaction is recognized and recorded

• Measurable: The event must have a clear money value.
• External or Internal: It can happen with outside groups or inside the business.
• Changes Value: It alters what the company owns or owes.

Explanation

• Opportunities and threats are primarily identified through External Environmental Analysis.
• External Analysis: Studies external factors such as the market, the economy, competitors, and industry trends.
• Opportunities: External factors that help a business grow.
• Threats: External factors that may harm the business.

(Note: Strengths and weaknesses are found through Internal Environmental Analysis*, which looks inside the company).

Explanation

• A company means an entity incorporated according to any law.
• A company is a legal entity created through incorporation under the applicable company law.
• Incorporation gives the company a separate legal identity from its owners or members.

Last verified on 14-08-2026

Explanation

• Scientific Management focuses on specialization and efficiency.
• It was developed mainly by Frederick Winslow Taylor.
• It emphasizes studying work scientifically to find the most efficient way of performing tasks.
• Specialization, standardization, training, and productivity are key features.

Last verified on 14-08-2026

Explanation

• Corporate strategy determines what businesses a company wants to be in.
• It defines the company's overall scope and business portfolio.
• It helps decide which businesses to enter, maintain, expand, or leave.
• Business strategy focuses on how to compete in a particular business.

Last verified on 14-08-2026

Explanation

• Decision-making of politicians is bounded by knowledge, time, and resources.
• Politicians cannot have complete knowledge of every possible alternative and consequence.
• Time constraints limit how much information can be analyzed before making a decision.
• Limited resources also restrict the available choices and actions.

Last verified on 14-08-2026

Explanation

• Parliament or legislature does NOT take Judicial Decisions.
• The legislature is responsible for making laws and taking legislative decisions.
• It also makes important policy and financial decisions, such as approving the budget.
• Judicial decisions are made by courts and the judiciary.

Last verified on 14-08-2026

Explanation

• A structured problem in which decision-makers know the possible outcomes is called a Certainty Condition.
• Under certainty, the decision-maker knows the available alternatives and their expected outcomes.
• Risk condition exists when outcomes are uncertain but probabilities can be estimated.
• Uncertainty condition exists when outcomes or their probabilities are not clearly known.

Last verified on 14-08-2026

Explanation

• According to Group Theory, public policy is the outcome of Group Struggle.
• Group Theory views society as a collection of interest groups competing for influence.
• Public policy results from the interaction, competition, and bargaining among these groups.
• Government acts as a mechanism for managing and balancing these competing interests.

Last verified on 14-08-2026

Explanation

• Share Capital is NOT aggregated when combining the parent and subsidiary companies.
• In consolidated financial statements, the parent and subsidiary's assets, liabilities, and revenues are generally combined.
• The subsidiary's share capital is eliminated against the parent's investment in the subsidiary.
• This prevents double counting of the subsidiary's equity.

Last verified on 14-08-2026