A Highly Centralized Organizational Structure

question 86

Multiple Choice

A highly centralized organizational structure

• A) allows top executives to retain authority for most strategic and operating decisions.
• B) is based on strict enforcement of detailed procedures backed by rigorous managerial oversight as the most reliable way to keep the daily execution of strategy on track.
• C) allows for tight control from the top that makes it easy to fix accountability when things do not go well.
• D) relies on the assumption that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and,further,that they lack the knowledge and judgment to make wise decisions about how best to do their work.
• E) All of these choices are correct.

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Definitions:

Interest Charge

The amount charged by a lender to a borrower for the use of borrowed money, typically expressed as an annual percentage of the principal.

Dishonor Of Note Receivable

Occurs when a promissory note's maker fails to make the scheduled payment to the note's holder when due.

Accounts Receivable

Amounts of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Allowance For Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected not to be collectible due to credit sales.