In a Decentralized Organization

question 40

Multiple Choice

In a decentralized organization:

• A)local-division managers have less control over their business segments.
• B)there are few deviations from the standardized way of doing things.
• C)front-line employees are not trained to respond to changes in the business environment.
• D)decisions are made by the managers most familiar with the problems and opportunities.

---

Definitions:

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, representing the total resources the company has at its disposal.

Stockholders' Equity

Refers to the residual interest in the assets of a corporation after deducting its liabilities.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, mortgages, and other debts.

Generally Accepted Accounting Principles (GAAP)

Generally accepted guidelines for the preparation of financial statements.