Companies Engaged in a Single Line of Business Most Commonly

question 54

Multiple Choice

Companies engaged in a single line of business most commonly utilize an organizational structure that can be

• A) a functional (departmental) organizational structure.
• B) either a centralized,principal,or critical-path organizational structure.
• C) either independent,consolidated,or hybrid profit centers.
• D) hybrid functional organizations with a combination of decentralized and centralized decision making.
• E) None of these choices is correct.

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Definitions:

Creditors' Risk

The risk that debtors will default on their obligations, resulting in financial loss for creditors.

Verifiable

The characteristic of information that can be checked for accuracy and reliability.

Financial Reports

Formal records of the financial activities and position of a business, individual, or other entity.

Comparability

A quality that enables users to identify similarities and differences between two or more items of financial information.