Which of the Following Is True of Centralization in an Organization

question 44

Multiple Choice

Which of the following is true of centralization in an organization?

• A)Authority is concentrated at the top of the managerial hierarchy.
• B)Subordinates play an important role in decision-making within the company.
• C)It prevents the organization from pursuing its strategy.
• D)It makes middle and first-line managers more flexible and adaptable.
• E)It allows people who are closest to problems to respond to them in a timely manner.

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Definitions:

Credit Sales

Sales made on credit, where the buyer is allowed to pay the seller at a later date, as opposed to immediate payment transactions.

Cash Inflow

The total amount of money being transferred into a business, typically measured over a certain period of time.

Budgeted Sales

The forecasted sales revenue a company expects to generate in a future period, based on market analysis, historical data, and sales targets.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, helping an organization to manage its cash balance.