Moonbow, Inc

question 1

Multiple Choice

 Moonbow, Inc., has a highly formalized structure with extensive rules, procedures, policies, and instructions. Positions are arranged hierarchically with top management dictating the direction and activity of the organization while lower-level managers and employees follow orders. The fundamental mechanism of monitoring involves close personal surveillance of subordinates by superiors. Moonbow, Inc., has adopted a _____ approach to organizational control.

• A) clan
• B) bureaucratic
• C) mutually adaptive
• D) totalitarian

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Definitions:

Liability Account

An account on a company's balance sheet representing debts or obligations that the company owes to others.

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and recorded, usually when it is earned and realizable.

Cash

Liquid currency and assets readily convertible to cash that are used by businesses to conduct transactions, pay expenses, and provide financial buffers.

Deferrals

Transactions where the recognition of revenue or expenses is postponed to future accounting periods.