Integral Insurance Has Strictly Defined Job Responsibilities and Lines of Communication

question 17

Multiple Choice

Integral Insurance has strictly defined job responsibilities and lines of communication. In this formal atmosphere, approval for any changes to standing procedures must be made by upper management. Here, the insurance firm has a

• A)wide span of control.
• B)high degree of centralization.
• C)decentralized authority.
• D)matrix design.
• E)flat structure.

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Definitions:

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, reflected on the income statement as part of the cost of financing debt.

Discount On Bonds

The amount by which a bond is sold below its face value.

Board Of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Authorized

Refers to the official approval or empowerment to carry out a specific action or set of actions.