Which of the Following Statements Is True of Centralization

question 3

Multiple Choice

Which of the following statements is true of centralization?

• A) Centralization typically increases costs.
• B) Retailer stores are required to hire more managers with centralization.
• C) Centralization allows management to better tailor its offering to the needs of the local market.
• D) Centralization provides the opportunity to have the best people make decisions for the entire corporation.

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Definitions:

Net Income

The overall income a business makes once all costs, such as taxes and operational expenditures, are deducted from the total earnings.

Net Cash

This refers to the amount of cash remaining after all cash outflows are subtracted from all cash inflows over a given period.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.