Which Organizational Structure Approach Has Fewer Directors with Managers Accountable

question 8

Multiple Choice

Which organizational structure approach has fewer directors with managers accountable 24 hours for staff,budget,and day-to-day management?

• A) Centralized management
• B) Decentralized management
• C) Business unit management
• D) Matrix

Apply the tax shield approach to calculate operating cash flow.

Prepare and interpret pro forma financial statements to estimate future financial performance.

Understand the impact of taxation and depreciation on project and equipment valuation and decision-making.

Estimate the depreciation tax shield for different asset classes.

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Definitions:

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost of production.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, indicating the cost per unit of output.

Operation Size

The scale or scope of a business's activities, ranging from small, single-location operations to large, multinational corporations.

Diseconomies of Scale

A situation where a company or organization grows so large that the costs per unit increase.