An Advantage of Centralization Is

question 16

Multiple Choice

An advantage of centralization is

• A) Increased time for upper-level management to focus on the organization's strategic goals
• B) The potential for decreased agency costs
• C) Managers of business segments feel more empowered to make decisions
• D) Managers of autonomous business segments are more likely to make decisions that are in the best interests of the organization as a whole

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Definitions:

Net Cash

An accounting term that represents the amount of cash remaining after all operating, investing, and financing activities are accounted for in a given period.

Operating Activity

Transactions and events related to the principal revenue-generating activities of an entity.

Investing Activity

Financial actions related to the purchase and sale of long-term assets and investments not included in cash equivalents.

Financial Activity

Transactions or events that affect the equity or debt of a company, including investments, financing, and distributing dividends.