At Afterbadge, a Chain of Stores That Sells Computer Accessories

question 54

Multiple Choice

At Afterbadge, a chain of stores that sells computer accessories, all the marketing activities are planned at the company headquarters. These plans are required to be carried out by the employees without any deviation. In the context of organizational authority, which of the following is best illustrated in this scenario?

• A) Delegation of authority
• B) Centralization of authority
• C) Staff authority
• D) Distributed authority

---

Definitions:

Consolidated Shareholders' Equity

The total equity in a company, combining the equity holdings across all subsidiaries and the parent company.

Surplus (Deficit)

A financial situation where income exceeds expenditures (surplus) or expenditures exceed income (deficit) over a given period.

Unrealized Intercompany Profits

Profits that result from transactions between parent and subsidiary companies that have not yet been realized through sales to external parties.

Equity Method

An accounting technique used by companies to record their investments in other companies, adjusting the investment for the investor's share of the investee's profits or losses.