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What Is Centralization and Decentralization, and How Are They Related

question 165

Essay

What is centralization and decentralization, and how are they related to span of control and delegation?


Definitions:

Consolidated Statement

Financial statements that aggregate the assets, liabilities, and operations of a parent company and its subsidiaries.

Equity Earnings

The portion of an investee's profits or losses that is attributed to the investor based on their ownership percentage.

Goodwill Impairment

A write-down of the goodwill account on a company's balance sheet if the fair value of a business unit falls below its carrying value.

Consolidated Shareholders' Equity

The total equity in a company, combining the equity holdings across all subsidiaries and the parent company.

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