Fayol Defined Centralization as Raising the Importance of the Subordinate

question 40

True/False

Fayol defined centralization as raising the importance of the subordinate role.

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Definitions:

Stockholders' Equity

The owners' residual interest in a corporation's assets after deducting liabilities, often referred to as shareholder equity or owner's equity.

Net Income

The total profit of a company after all expenses have been deducted from revenues, also known as the bottom line.

Investments

Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, or real estate.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains the same.