Which of the Following Decisions Would Likely Be Made by a Centralized

question 60

Multiple Choice

Which of the following decisions would likely be made by a centralized authority?

• A) What are the procedures All American Burger should use to ensure food safety?
• B) If All American Burger wishes to recruit current students for entry-level management positions, which colleges and universities should All American Burger choose?
• C) How should a regional division spend the money in its advertising budget?
• D) What special menu items should be offered in order to encourage new customers?
• E) Should marketing focus on bringing in new customers or taking customers from the competition?

Evaluate the performance of a manager in a profit center using return on investment (ROI) and residual income.

Differentiate between internal centralized service departments and their roles within an organization.

Understand the concept of return on investment and how it is calculated.

Determine the investment turnover and understand its implications for business performance.

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Definitions:

Securities And Exchange Commission

A U.S. government agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges.

Due Diligence

A comprehensive appraisal or investigation of a business or person prior to signing a contract, or an act with a certain standard of care.

Registration Statement

A document filed with the Securities and Exchange Commission (SEC) that contains details about an investment offering for sale to the public.

Posteffective Period

The time frame after a registration statement has been declared effective by the SEC, during which securities may be sold.