Which of the following is a disadvantage in a centralized organizational structure?

• A.Loss of economies of scale
• B.Communication conflicts.
• C.Vulnerabilities in sharing knowledge
• D.Slower decision making

Comment: *

Name: *

Email: *

Verification: *

Fulford Company applies the target pricing and costing approach. The following information about costs and revenues of Fulford's product are available for the year just ended:

Fulford plans to increase unit sales to 80,000 by reducing the product's unit price to US $320.
If Fulford desires a unit target operating income of 12CYo, by what amount must it reduce the full cost per unit?

• A.US $32.00
• B.US $38.40
• C.US $70.40
• D.US $80.00

Comment: *

Name: *

Email: *

Verification: *

A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

• A.Lack of coordination among different business units
• B.Operational decisions are inconsistent with organizational goals
• C.Suboptimal decision-making
• D.Duplication of business activities

Comment: *

Name: *

Email: *

Verification: *

An entity must select from among several methods of financing arrangements when meeting its capital requirements. To acquire additional growth capital while attempting to maximize earnings per share, an entity should normally

• A.Attempt to increase both debt and equity in equal proportions, which presences a stable capital structure and maintains investor confidence.
• B.Select debt over equity initially, even though increased debt is accompanied by interest costs and a degree of risk.
• C.Select equity over debt initially, which minimizes risk and avoids interest costs.
• D.Discontinue dividends and use current cash flow, which avoids the cost and risk of increased debt and the dilution of EPS through increased equity.

Comment: *

Name: *

Email: *

Verification: *

Which of the following situations best applies to an organization that uses a project rather man a process to accomplish its business activities?

• A.A manufacturing organization acquires component parts from a contracted vendor
• B.A commercial constructor company is hired to build a warehouse.
• C.A clothing company designs makes and sells a new item.
• D.A city department sets up a new firefighter training program.

Comment: *

Name: *

Email: *

Verification: *