The minimum freedom for managers and maximum constraints are the main features of ____________?
Correct answer: B. total centralization
- A. total autonomy
- B. total centralization
- C. total decentralization
- D. total congruency
Explanation
Total centralization leaves decision-making authority at the top, giving lower-level managers little freedom and imposing maximum constraints. Total decentralization would produce the opposite arrangement.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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