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.

---

Definitions:

Journal Entry

A record in accounting journals that details a business transaction, including information about debits and credits to various accounts.

Overdue Account Payable

An obligation or debt that a company has not paid by its due date.

Fiscal Year

A 12-month period that a company uses for accounting purposes and preparing financial statements.

Discounted Note

A promissory note that is issued at a price lower than its face value and repaid at its face value at maturity.