Explain What Is Meant by Authority

question 7

Essay

Explain what is meant by authority. How can authority be centralized? How can it be decentralized? Describe the circumstances under which centralization versus decentralization would be more desirable. If you were a manager in a large company,what particular challenge might you expect to face with regard to the use of decentralization?

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer to the seller, typically due to a return or an overcharge.

Gross Profit

Revenue minus the cost of goods sold (COGS), representing the profit a company makes after deducting the costs associated with making and selling its products.

Discount Period

A set time period during which a discount is available, or the period between the issuance of a bill and its payment due date where a discount may be taken for early payment.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an existing invoice.