The Decision Making at Jerome's Organization Is Partly the Responsibility

question 15

Multiple Choice

The decision making at Jerome's organization is partly the responsibility of the middle and even the lower level managers. His organization is of a size large enough that having top levels of management to make all the necessary decisions would prove to be counter- productive for the business. It is most probable that Jerome's organization is .

• A) traditionally authoritative
• B) centralized
• C) bureaucratic
• D) a charismatic authority
• E) decentralized

---

Definitions:

Variable Costs

Expenses that fluctuate based on the amount of output or the level of activity in a business.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the fixed versus variable costs of a business.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly over its lifespan on an annual basis.