When Authority Is ________, the Authority to Make Significant Decisions

question 95

Multiple Choice

When authority is ________, the authority to make significant decisions is delegated to people throughout the hierarchy, not concentrated at the top.

• A) standardized
• B) formalized
• C) decentralized
• D) differentiated

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Definitions:

Face Value

The nominal or stated value of a financial instrument, such as a bond or stock, as defined by the issuer.

Bond Issue

A bond issue refers to the process by which a corporation or government raises funds by issuing bonds to investors, which are debt securities promising to repay the principal along with interest.

Bond Discount

The difference between the bond's face value and its selling price when the bond is sold for less than its face value.

Premium on Bonds

The amount by which the price paid for a bond exceeds its face value, typically because the interest rate it pays is higher than the market rate.