When Managers Allow Subordinates to Participate in Decision Making and Planning

question 45

Multiple Choice

When managers allow subordinates to participate in decision making and planning, particularly with regard to their own responsibilities and the operation of their own units, this is known as:

• A) top-down management
• B) organizational development
• C) participatory management
• D) devolution

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Definitions:

Control Account

An account used in the general ledger to summarize the balances of subsidiary accounts and facilitate the verification of financial information accuracy.

Customer Account Balances

The amounts owed to a company by its customers for goods or services delivered on credit.

Adjusting Entries

Entries made in the accounting records to realign the balances of accounts before financial statements are prepared.

Accrued Expense

An expense that has been incurred but not yet paid, recognized on the financial statements.