Which of the Following Statements About Centralization Is True

question 23

Multiple Choice

Which of the following statements about centralization is true?

• A) Centralization typically increases costs
• B) Retailer stores are required to hire more managers with centralization
• C) Centralization allows management to better tailor its offering to the needs of the local market
• D) Centralization provides the opportunity to have the best people with the greatest expertise make decisions for the entire corporation
• E) All of these statements about centralization are true

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Definitions:

Defined Contribution Pension Plans

Retirement plans where employer contributions are specified, and the benefits received by the employee depend on the plan's investment performance.

Pension Fund Asset

Financial resources that a pension fund holds to meet future obligations to participants, including equities, bonds, real estate, and other investments.

Defined Contribution Pension Plan

A retirement plan where employers, employees, or both make contributions on a regular basis, but the benefits received depend on the plan's investment performance.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.