To Better Organize His Landscaping Business, Scott Started to Divide

question 295

True/False

To better organize his landscaping business, Scott started to divide each job into several parts. One is excavation and removal of old landscaping, the next is design, followed by purchasing, and finally installation of new plants. If he assigns a different employee to each part, this action would be an example of departmentalization.

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Definitions:

Geometric Average Return

The average rate of return per period on an investment, compounded over multiple periods, which is calculated by taking the nth root of the total returns, where n represents the number of periods.

Stock

An investment vehicle that denotes holding equity in a firm, granting the holder rights to a fraction of the company's assets and earnings.

Geometric Average

A method of calculating the average rate of return of a set of values that is compounded over time.

Arithmetic Average

A measure of central tendency calculated by dividing the sum of all values in a dataset by the number of values.