McDonald's Uses Detailed Standard Operating Procedures Throughout the World to Ensure

question 82

Multiple Choice

McDonald's uses detailed standard operating procedures throughout the world to ensure product quality.Therefore,McDonald's has a high degree of _________.

• A) Specialization
• B) Formalization
• C) Centralization
• D) Hierarchy

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Definitions:

Circular Flow Model

An economic model depicting the continuous, circular flow of goods, services, and money between households and businesses in an economy.

Households

Economic units consisting of all individuals who occupy a home, responsible for making consumption decisions.

Market System

In this model, the economic operations regarding investments, the scale of production, and the distribution strategy are guided by supply and demand laws, ensuring that the pricing of goods and services is freely determined through a system of unrestricted prices.

Business Risk

The potential for financial loss or failure that a business faces due to factors like market fluctuations, competition, and management decisions.