The Process of Setting Up Individual Functional Units of the Business

question 272

Multiple Choice

The process of setting up individual functional units of the business to do specialized tasks is called:

• A)Departmentalization.
• B)Division of labor.
• C)Job specialization.
• D)Delegation of authority.

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Definitions:

Compounded Annually

A method of calculating interest in which the interest earned on an investment is reinvested, and new interest is earned on that interest annually.

Compounding

The financial process where an investment earns interest not only on the principal amount but also on the accumulated interest over time.

Compound Interest

This involves calculating interest on the original sum of money plus the interest that has gathered over preceding intervals, whether for a deposit or a loan.

Time Value

The viewpoint that money in one's possession now is considered more valuable than the same amount in the future, thanks to its ability to generate profits.