Which of the Following Is a Potential Problem with Decentralizing

question 97

Multiple Choice

Which of the following is a potential problem with decentralizing decision-making authority?

• A)Possible synergies might be missed
• B)Divisions, functions, or teams may lose sight of organizational goals
• C)Organizational performance might suffer
• D)Lack of communication among functional managers might occur
• E)All of these choices are correct.

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Definitions:

Accounts Receivable

Financial obligations customers have to a business for received services or goods that have not been paid for.

Miscellaneous Expense

Expenses that do not fit into any specific category of the business's financial statements, often small or infrequent costs.

Accounts Payable

Accounts payable represent short-term liabilities or money owed by a business to its creditors or suppliers for goods and services purchased on credit.

Journal Entry

A record of a financial transaction in the accounting books of a business, showing the accounts affected and the amounts.