Which Is the Best Example of a Decentralized Operation

question 84

Multiple Choice

Which is the best example of a decentralized operation?

• A) One owner who prepares plans and makes decisions for the entire company.
• B) Each unit is responsible for their own operations and decision making.
• C) In a major company, operating decisions are made by top management.
• D) None of the above. All are examples of a centralized management.

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Definitions:

Inventory Turnover

A ratio showing how often a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Times Interest

A financial ratio that measures a company's ability to meet its interest obligations.

Acid-test Ratio

A financial ratio indicating a firm's capacity to settle its short-term obligations without selling its stock.

Current Ratio

A financial metric assessing a firm's capability to cover its short-term debts using its short-term assets, determined by dividing current assets by current liabilities.