When You Are in Doubt About Whether It Is Appropriate

question 71

Multiple Choice

When you are in doubt about whether it is appropriate to utilize a communication tool:

• A) Use it anyway
• B) Do whatever your boss does
• C) Ask permission
• D) Do not use it

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Definitions:

Investment Center

A subunit of the firm that has decision rights over the amount of capital to be invested, the prices of its products, and the manufacturing process and is usually composed of several profit centers.

Profit Center

A subunit of the firm with the decision rights over prices and manufacturing processes to maximize profit. Profit centers are evaluated on meeting target profits and are composed of several cost centers.

Responsibility Centers

Units or departments within an organization whose managers are accountable for specific financial operations and performance.

Decision Rights

The duties that a particular individual in an organization is expected to perform.