If Decision Making Is Pushed Down to Lower Level Employees,and

question 24

Multiple Choice

If decision making is pushed down to lower level employees,and these employees feel empowered to make decisions on their own,an organization has a _____ structure.

• A)wide
• B)decentralized
• C)moderate
• D)narrow
• E)concentrated

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Definitions:

Acid-Test Ratio

A stringent indicator of a company's liquidity, calculated by dividing liquid assets excluding inventories by current liabilities.

Company

A business organization founded by a group of individuals dedicated to pursuing and administering a commercial or industrial venture.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Company

A business entity established by a collection of people to conduct and manage a commercial venture.