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:

Credit Sale

Transactions where goods or services are sold by providing credit to the customer, with payment to be received at a later date.

Merchandise Return

Goods returned by the buyer to the seller after purchase due to defects, dissatisfaction, or other reasons, often resulting in a reversal or adjustment of the initial sale transaction.

Sales Tax

A government-imposed tax on sales of goods and services, paid by the purchaser and collected by the seller.

Credit Customer

A customer who purchases goods or services on credit, paying at a later date rather than at the time of sale.