In a Highly Centralized Organizational Structure

question 58

Multiple Choice

In a highly centralized organizational structure,

• A) top executive retain authority for most strategic and operating decisions.
• B) the thesis is that strict enforcement of detailed procedures backed by rigorous managerial oversight is the most reliable way to keep the daily execution of strategy on track.
• C) tight control from the top makes it easy to fix accountability when things do not go well.
• D) one of the basic tenets is that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and, further, that they lack the knowledge and judgment to make wise decisions about how best to do their work.
• E) All of these.

Understand the use of zero balance accounts and their benefits.

Learn metrics for measuring the efficiency of credit and collection management, like the average collection period.

Explore inventory management concepts relevant to financial management, including EOQ and carrying costs.

Calculate the operating cycle of a business.

---

Definitions:

Government Bonds

Debt securities issued by a government to support government spending, considered low-risk investments since they are backed by the taxing power of the issuing government.

Corporate Bonds

Debt securities issued by corporations to finance their operations, which pay interest to investors until maturity.

Available-For-Sale

A classification of securities which are not actively traded by the company, with changes in value reported in other comprehensive income.

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, but not control those policies.