A Typical Organization Chart Showing Delegation of Authority Would Show

question 1

Multiple Choice

A typical organization chart showing delegation of authority would show

• A) shareholders delegating to the board of directors.
• B) the board of directors delegating to shareholders.
• C) the chief executive officer delegating to the board of directors.
• D) the controller delegating to the chief executive officer.

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Definitions:

Amortize

To amortize means to gradually reduce or write off the initial cost of an asset over a period, typically through regular payments covering interest and principal.

Non-Controlling Interest

A share of equity ownership in a subsidiary not attributable to the parent company, representing the portion of the subsidiary's net assets and net income not owned by the parent.

Subsidiary

A company that is controlled by another company, known as the parent company, through ownership of more than 50% of its voting stock.

Interest Revenue

Income earned on investments or money lent, represented by the amount charged to borrowers for the use of the lender's funds.