Decentralization Encourages Upper-Level Management to Concentrate on Short-Term Decisions

question 68

True/False

Decentralization encourages upper-level management to concentrate on short-term decisions.

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Definitions:

Guaranteed Rate

A fixed interest rate agreed upon in a financial contract, ensuring that the rate will not change for the contract's duration.

Net Asset Value

The value per share of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.

Closed-end Fund

A type of investment fund with a fixed number of shares that are traded on a stock exchange, unlike open-end funds that can issue or redeem shares at any time.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used to determine the price of a share of a mutual fund or an exchange-traded fund.