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Multiple Choice Indicate the answer choice that best completes the statement or answer the question. 1. All of the following are advantages of decentralization except a managers make better decisions when closer to the operations of the company b. expertise in all areas of the business is difficult; decentralization makes it better to delegate certain responsibilities C. each decentralized operation purchases its own assets and pays for operating costs d. decentralized managers can respond quickly to customer needs 2. Which of the following is not a disadvantage of a decentralized operation? a. competition among managers b. duplication of operations c. price cutting by departments that are competing in the same product market d. top management freed from everyday tasks to do strategic planning 3. The profit margin is the ratio of a. income from operations to sales b, income from operations to invested assets c. assets to liabilities d. sales to invested assets 4. The formula for the return on investment is 1. Invested Assets/Income from Operations b. Sales/Invested Assets c. Income from Operations/Sales d. Income from Operations/Invested Assets 5. The best measure of managerial efficiency in the use of investments in assets is 1. return on stockholders' equity b. investment tumover c. income from operations d. inventory turnover 6. The ratio of sales to invested assets, which is also a factor in the DuPont formula for determining the return on investment, is called a. profit margin b. indirect margin c. investment tumover d. cost ratio