Which of the Following Statements Is True Regarding a Centralized

question 74

Multiple Choice

Which of the following statements is true regarding a centralized organization?

• A) A centralized organization is more flexible than a decentralized organization.
• B) In a centralized organization, decision making is pushed down to the managers closest to the action.
• C) A centralized organization is more responsive than a decentralized organization.
• D) In a centralized organization, top managers are rarely involved in decision making.
• E) In a centralized organization, decision making is concentrated at a single point in the organization.

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Definitions:

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Equipment Account

An account on the balance sheet that represents the current value of the equipment owned by a company after adjusting for depreciation and amortization.

Acquisition Method

An accounting approach used for consolidating the financial statements of a parent company and its subsidiaries to present as one entity.

Equity Method

Equity Method is an accounting technique used to record investments in other companies, where the investing company has significant influence but does not have full control or majority ownership.