Centralized Operations Are Typically More Efficient and Cost-Effective,while Decentralized Operations

question 86

Multiple Choice

Centralized operations are typically more efficient and cost-effective,while decentralized operations are typically

• A)more customer service oriented and employee friendly
• B)more responsive to investors needs
• C)better equipped to deal with a crisis
• D)more productive

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Definitions:

Bank Overdrafts

An extension of credit from a lending institution when an account reaches zero, allowing the account holder to continue withdrawing money up to a certain limit.

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed directly.

Operating Activities

Transactions and events related to the principal revenue-producing activities of an entity, reflected in its cash inflows and outflows.