All Organizations Have Two Organizational Systems

question 233

Multiple Choice

All organizations have two organizational systems,

• A) the command system and the control system.
• B) the formal organization and the informal organization.
• C) the functioning system and backup system.
• D) the primary organization and secondary organization.

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Definitions:

Rental Payments

Periodic payments made by a lessee to a lessor for the use of a property, vehicle, or equipment.

Capital Lease

A leasing arrangement that allows a lessee to record the leased asset as their own in their financial statements because it effectively transfers nearly all risks and rewards of ownership.

Lease Obligation

A financial commitment that a lessee is required to make under the terms of a lease, typically involving regular payments over a specified period.

Financial Reporting

The process of disclosing financial information and statements to the external users to help them make informed decisions about investing in or lending to the company.