A Responsibility Center Can Be a Department, Division, or Segment

question 83

True/False

A responsibility center can be a department, division, or segment, but not a subsidiary of the parent company.

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Definitions:

Manage Themselves

The ability of individuals or groups to regulate their own actions and affairs without external intervention.

Relationships

The way in which two or more concepts, objects, or people are connected, or the state of being connected or interrelated.

Leader-follower Congruence

The degree of alignment between the values, goals, and actions of leaders and their followers within an organization or group.

Transparency

The practice of being open, honest, and straightforward about various activities, allowing stakeholders to have insight into the decisions and actions of an organization.