Relative to the Functional Structure, the Divisional Structure

question 147

Multiple Choice

Relative to the functional structure, the divisional structure:

• A) encourages decentralization.
• B) has a higher degree of work specialization.
• C) has a more pronounced division of labor.
• D) has excellent coordination across departments.
• E) results in an efficient use of resources.

Explain how the trading of shares impacts a corporation, including the effects on share capital and financial position.

Understand the different reasons a company might issue shares, repurchase its own shares, or undergo a stock split.

Recognize the legal and financial implications of shareholder liability and corporate governance, including the role of the board of directors.

Identify how the market perceives and values a corporation, including market capitalization and the factors influencing share prices.

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Definitions:

Issued at a Premium

Refers to the situation where securities, such as bonds, are sold for a price above their face value.

Discount on Bonds Payable

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its value at issuance.

Journal Entry

A record in accounting that shows a business transaction and its effects on the company's accounts.