Fayol Believed That Decision-Making Authority Should Remain in the Hands

question 319

Multiple Choice

Fayol believed that decision-making authority should remain in the hands of top management

• A) in small organizations, but should be delegated to middle and first-line managers in large organizations.
• B) in large organizations, but could be delegated to middle and first-line managers in small organizations.
• C) in all types and sizes of organizations.
• D) only in organizations subjected to significant government regulation.

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Definitions:

Bonds Payable

Bonds payable refers to the long-term debt a company owes to bondholders, representing the amount that is due to be paid back at the bond's maturity date along with periodic interest payments.

Straight-Line Method

A depreciation method that allocates an equal amount of the asset's cost to each accounting period of its useful life.

Effective-Interest Method

A technique of calculating the amortized cost of a bond and the amount of interest expense over its life, correcting for any differences between the issue price and the redemption value.

Interest Expense

Interest expense is a cost incurred by an entity for borrowed funds, reflected on the income statement.