Which of These Statements About Decentralization Is FALSE

question 108

Multiple Choice

Which of these statements about decentralization is FALSE?

• A)Organizations decentralize as they grow larger.
• B)Different degrees of decentralization can occur simultaneously in different parts of the organization.
• C)Organizations operating in diverse environments are more effective when they centralize decision making.
• D)Optimal level of decentralization depends on several contingencies.
• E)Large organizations that remain centralized tend to become less responsive to the external environment.

Understand the objectives and principles behind the creation of accounting standards by the FASB and the flexibility offered by IFRS.

Recognize the global impact of IFRS and the efforts for convergence with U.S. GAAP by IASB and FASB.

Identify how financial information is utilized by various external parties including creditors, investors, and analysts.

Understand the principles of providing relevant, neutral, verifiable, and faithfully represented financial information.

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Definitions:

Naturalistic Observation Method

The naturalistic observation method involves observing subjects in their natural environment without intervention, to study behaviors and interactions as they unfold naturally.

Correlational Method

A research strategy that investigates the relationship between two or more variables to determine whether they occur together or not in a predictable pattern.

Social Desirability Bias

The inclination of individuals to respond to inquiries in a way that they believe others will approve of.

Self-Reports

Self-reports involve individuals providing information or feedback about themselves, typically through questionnaires or interviews.