In a Centralized Organization

question 6

Multiple Choice

In a centralized organization:

• A)local-division managers do not need higher approval for most business decisions.
• B)company-wide standard operating procedures are common.
• C)local-division managers have an opportunity to gain decision-making experience.
• D)decisions are made by local division managers.

---

Definitions:

After-Tax Cost

After-Tax Cost is the expense associated with a transaction or activity, taking into account the effect of income tax deductions or liabilities.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary according to income or profit levels.

Cost of Debt

The cost of debt is the effective rate that a company pays on its total debt, used in capital structuring decisions to evaluate the affordability of borrowing.

Dividend Growth Model

A model that estimates the value of a stock based on its expected dividends and their growth rate.