Divisions in a Decentralized Company Can Be Created Along Which

question 39

Multiple Choice

Divisions in a decentralized company can be created along which of the following lines?

• A)Geographical
• B)Types of goods or services produced
• C)Type of responsibility given to divisional manager
• D)Two or more of the other answers are correct
• E)None of these

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Definitions:

Financing Activities

Transactions involving changes in equity and borrowings of the company, reported in the cash flow statement.

Net Cash

The difference between a company's total cash inflows and outflows over a specific period.

Operating Activities

Business actions that are directly related to the production, sale, and delivery of products or services, which are reflected in the company's income and cash flow statements.

Cash Basis

A bookkeeping approach that registers income and expenses at the time cash is exchanged, rather than when they are accrued.