The Basic Function of Profits and Losses Is to Allocate

question 174

True/False

The basic function of profits and losses is to allocate society's scarce resources to their highest valued uses.

---

Definitions:

Bureaucratic

Referring to a system of administration marked by strict policies, procedures, and hierarchy, often leading to delays and inflexibility.

Organic

A form of organizational structure characterized by flexibility, decentralized decision-making, and a broad scope of operations.

Decentralized

Describes organizations or systems where decision-making powers are distributed among various levels or departments rather than being concentrated in a single point of authority.

Span Of Control

The number of subordinates that a manager or supervisor can effectively oversee, control, or manage directly.