Centralization of All Decision Making in an Organization Is Essential

question 45

True/False

Centralization of all decision making in an organization is essential to protect the interests of its shareholders.

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Definitions:

Liabilities

Financial obligations or debts owed by a business to another entity, which are expected to be settled through the transfer of economic benefits like cash or goods.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' share in the company.

Gaap

Generally Accepted Accounting Principles are the standard framework of guidelines for financial accounting used in any given jurisdiction, commonly the U.S.

Lifo Inventory

A method of inventory valuation where the last items placed into inventory are the first ones taken out, used to calculate the cost of goods sold and ending inventory.