An International Distribution Company Has a Shipping Division, a Warehouse

question 42

Multiple Choice

An international distribution company has a shipping division, a warehouse division, a computer hardware and software distribution center, as well as, a marketing research department, a human resources department, and an accounting department. A salesperson who works in the shipping division is told by the accounting department that he must turn in a weekly expense account. His supervisor in the shipping division wants expense accounts submitted monthly. The salesperson is likely experiencing a problem with ____.

• A)line authority
• B)delegation of authority
• C)centralization
• D)chain of command
• E)organizational synergy

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Definitions:

Incremental Cash Flows

Additional cash flows from taking on a new project, crucial for analysis in capital budgeting decisions to determine a project's potential profitability.

Capital Budgeting

Analysis techniques concerned with justifying money spent on long-term assets and projects.

Profitability

A measure of the efficiency of a company or investment in generating profit or return compared to its revenue or investment size.

Capital Budgeting Process

The procedure companies use to evaluate and select long-term investments that are aligned with their goal of shareholder wealth maximization.