Delegating Greater Authority to Subordinate Managers and Employees

question 93

Multiple Choice

Delegating greater authority to subordinate managers and employees

• A)creates a more horizontal or flatter organizational structure with fewer management layers and usually acts to shorten organizational response times.
• B)usually slows down decision-making because so many more people are involved and it takes longer to reach a consensus on what to do and when to do it.
• C)can be a demotivating factor because it requires people to take responsibility for their decisions and actions.
• D)is very risky because it usually results in lots of "bad" decisions on the part of employees, as well as lower levels of financial performance.
• E)enhances greater cross-unit coordination and aids the capture of strategic fit benefits across related businesses.

---

Definitions:

Received Payment

The money received by an individual or a company for goods delivered or services rendered.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, serving as the foundation of the double-entry bookkeeping system.

Customer on Account

Transactions where a customer purchases goods or services on credit, creating an account receivable for the business.

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presenting its financial performance and position at a given point in time.