Delegating Decision Making to Lower-Level Managers, Thereby Enabling an Organisation

question 50

Multiple Choice

Delegating decision making to lower-level managers, thereby enabling an organisation to react quickly to opportunities and problems as they arise, is a characteristic of:

• A) a decentralised organisation.
• B) a centralised organisation.
• C) a corporation.
• D) responsibility accounting.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Stock Dividend

Stock that is distributed to stockholders instead of cash or other assets.

Common Stock

Equity shares issued by a corporation as ownership evidence, granting voting rights and a share in the company's profits.

Dividends Payable

Liabilities on a company's balance sheet representing the amount of dividends declared by the board of directors but not yet paid to shareholders.