Gabriella Recently Accepted a Job with a Large Insurance Firm

question 35

Multiple Choice

Gabriella recently accepted a job with a large insurance firm as an internal auditor.Gabriella has found that her new job is quite different than the internship she had at an accounting consulting firm.The insurance firm has strictly defined job responsibilities and lines of communication.It seems that for every decision that Gabriella needs to make,approval must be obtained from upper management! Overall,she has found the atmosphere to be quite formal as compared to the internship.Gabriella has correctly concluded that of the following choices,the insurance firm has

• A)a wide span of control.
• B)a high degree of centralization.
• C)decentralized authority.
• D)a matrix design.
• E)an ineffective staff.

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses have been deducted.

Net Sales

The revenue from sales transactions after deductions for returns, allowances, and discounts have been made.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.