41. Which of the following is not an advantage ofdecentralization?

A) provides training

B) frees top management time

C) works to achieve goal congruence

D) supports the use of expert knowledge

42) Which of the following is a disadvantage ofdecentralization?

A) It results in increased customer response time.

B) It allows only the top management to make decisions.

C) It does not motivate employees because the decision-makingpowers are not delegated.

D) It results in problems with achieving goal congruence.

49. To evaluate the financial performance of an investmentcenter, a business needs key performance indicators that measure________.

A) manufacturing efficiency and product defect rate

B) operating income and the use of the center's assets

C) customer satisfaction and market share

D) generation of sales revenues and control of operatingexpenses

51) Carey, Inc. provides the following information:

Profit margin ratio	5%
Asset turnover ratio	2 times
Net sales	$450,000
Target rate of return	9%

Calculate the return on investment.

A) 10%

B) 45%

C) 4%

D) 14%

66) Capital budgeting involves ________.

A) budgeting for yearly operational expenses

B) preparing the sales budget for the coming year

C) deciding among various long-term investments

D) analyzing various alternatives of financing available to acompany

Answer rating: 100% (QA)

41 Option c is correct works to achieve goal congruence Decentralisation is referred to as a form of ... View the full answer