Differentiation Refers to the Need to Break the Organization into Departments

question 139

True/False

Differentiation refers to the need to break the organization into departments.

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Definitions:

Credit Policy Relaxation

The act of making a company's criteria for extending credit more lenient, aiming to boost sales at the risk of higher bad debts.

Accounts Receivable

Unpaid dues from customers to a company for goods or services already delivered.

Zero Balance Accounts

A checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented.

Excess Funds

Surplus money available with an entity after all expenses and obligations have been met, which can be invested or saved for future use.