Which of the Following Is a Potential Disadvantage of a Bureaucratic

question 19

Multiple Choice

Which of the following is a potential disadvantage of a bureaucratic structure?

• A) Excessive bending of the rules
• B) Separation of the position from the person
• C) Increased operating costs
• D) Role ambiguity

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Definitions:

Cost Principle

The accounting principle that states goods and services should be recorded at their cost at the time of acquisition.

Historical Cost Principle

An accounting principle that requires assets to be recorded and reported at their purchase price, without adjustments for inflation or market value changes.

Owner's Equity

The value that accrues to the owners of a company after settling all its debts, equivalent to the assets minus the liabilities.

Residual Equity

Residual Equity represents the amount of equity that remains for the common shareholders after all liabilities and preferential stock claims have been settled.