Many Intangible Assets

question 20

Multiple Choice

Many intangible assets:

• A)do not appear on the balance sheet since it is difficult to place a reliable financial value on them.
• B)should be evaluated with ROI and other performance measures.
• C)can be measured and managed with current financial control systems.
• D)are unimportant because they have no physical substance.

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Definitions:

Division of Labor

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency.

Hierarchy of Authority

The structured ranking of positions within an organization, where every level is subordinate to the one above it.

Departmentalization

The method an organization uses to structure itself by dividing responsibilities among different departments or units based on task, function, product, geography, or customer.

James D. Thompson

A sociologist known for his contributions to organizational theory, particularly for his work on organizations as open systems and technologies.