Of the Following Statements, Which One Would Be Considered False

question 12

Multiple Choice

Of the following statements, which one would be considered false regarding the concept of authority?

• A) Positions located at the bottom of an organization's hierarchy have more formal authority than those at the top.
• B) Authority is accepted by subordinates.
• C) Authority is a force for achieving desired outcomes.
• D) People have authority because of the positions they hold, not because of personal characteristics.
• E) Authority exists along the formal chain of command.

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Definitions:

Foreign Subsidiary's Financial Statements

Accounting records that reflect the financial performance and position of a company's subsidiary located in another country.

Revenues And Expenses

The income earned from normal business operations and the costs incurred to generate that income, respectively, within a specific period.

Translated Value

The value of a foreign asset, liability, or transaction expressed in the currency of another country after conversion using the appropriate exchange rate.

Functional Currency

The main form of money in the principal economic setting where a business functions and produces cash flows.