The Practice of Delegating Decision-Making Authority to the Lower Levels

question 153

Multiple Choice

The practice of delegating decision-making authority to the lower levels of management in a company is

• A) centralization.
• B) decentralization.
• C) performance evaluation.
• D) authorization.
• E) hierarchy flattening.

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Definitions:

Cash Dividends

Cash distributions given by a company to its stockholders out of its earnings.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Par Value

Par value, also known as nominal value, is the legally documented worth of a security's share, such as stocks or bonds, at the time of its issuance.

Stockholders

Individuals or entities that own shares in a corporation, providing them ownership interest.