Nikolai & Sons Corp

question 83

Multiple Choice

Nikolai & Sons Corp. is subdivided into organizational units called Nikolai & Sons Health Care, which provides general medicines for hospitals; Nikolai & Sons Professional, which provides office supplies for businesses; and Nikolai & Sons Consumer, which sells consumer goods. From this scenario, it can be inferred that Nikolai & Sons Corp. uses _____.

• A)​decentralization
• B)​hierarchy​
• C)​job rotation
• D)​departmentalization
• E)​job enrichment

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Definitions:

Commercial Substance

A situation in future cash flows of a business that are expected to change significantly due to a transaction, indicating the transaction has economic impact.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a company's assets over time.

Trade-In Allowance

The amount deducted from the price of a new item for trading in something old.

Double-Declining Balance Method

An accelerated depreciation method that doubles the normal depreciation rate, reducing the asset's book value more quickly.