Which of the Following Is True of Centralized and Decentralized

question 93

Multiple Choice

Which of the following is true of centralized and decentralized authority?

• A) Organizations that share relatively little authority are said to be decentralized, and those that share a lot of authority are said to be centralized.
• B) Most organizations either tend to have a completely centralized or a completely decentralized authority depending on the type of organizational structure.
• C) Supervisors who know whether their employer has a centralized or decentralized structure understand how much authority they can expect to have.
• D) An organization cannot make changes in the degree to which it decentralizes or centralizes authority depending on its strategic plan and goals.

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Definitions:

Effective-Interest Method

A method of calculating the interest expense on a bond that factors in the bond's book value and yield to maturity.

Discounted Bond Issue

The sale of bonds for less than their face value, typically to compensate investors for taking on additional risk or for interest rates being higher than the bond's coupon rate.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the compilation of financial statements in the U.S.

Lessee

The party in a lease agreement who rents or leases property from the lessor.