Centralization Refers to The

question 43

Multiple Choice

Centralization refers to the:

• A) concentration of authority for most decisions at the top level of an organization.
• B) dispersion of authority to make decisions throughout all organization levels.
• C) system that allows others to make decisions and exercise discretion in their work.
• D) process of creating wide spans of control and few hierarchical levels in organizations.
• E) process of entrusting work to others by giving them the right to make decisions and take action.

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Definitions:

Other Reserves

Equity accounts that record gains and losses recognized directly in equity, including revaluation reserves and reserves created from the reallocation of profits.

Non-controlling Interest

An ownership interest in a corporation where the stake does not grant the holder the majority of voting rights.

Parent Entity

A company that owns enough voting stock in another corporation to control management and operations by influencing or electing its board of directors.