The Primary Reason That the CEO of a Large Company

question 56

Multiple Choice

The primary reason that the CEO of a large company such as McDonald's would push decisions as far down the hierarchy as he can is to:

• A) develop managers.
• B) make decisions more quickly.
• C) appear more American and thereby increase sales.
• D) save himself the trouble of making these decisions.

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Definitions:

Unearned Revenue

This is income received by a business for goods or services yet to be delivered or performed. It's considered a liability until the product or service is delivered.

Cash Payment

A transaction in which a payment is made using physical currency or through a digital cash transfer rather than credit.

Deferred Tax Asset

An asset on a company's balance sheet that may be used to reduce future tax liability; it arises when a company has overpaid taxes or paid them in advance.

Wages Expense

An accounting term that refers to the total cost incurred by a company to pay its employees, recognized in the period employees perform the work.