The top management at a chain of coffee shops makes all of the decisions and delegates very little authority. What is the likely effect on the organization?
A) More control, more responsive
B) More control, less responsive
C) Less control, less empowerment
D) More efficiency, more empowerment
E) Less control, more empowerment
Question 2 - The resources owned by David's Spa and Salon total 148,000. The total amount of debt that it owes to others is 87,000. Which of the following about David's Spa and Salon is true?
A) Owners' equity is 87,000.
B) Owners' equity is 61,000.
C) Liabilities are 148,000.
D) Liabilities are 61,000.
E) Owners' equity is 235,000.
Question 3 - A company that seeks to maintain a consistent image throughout the organization and focus on efficiency likely has:
A) customer departmentalization.
B) a flat organizational structure.
C) decentralized authority.
D) centralized authority.
E) product departmentalization.
Question 4 - In order for The Gift Market, a local specialty store, to purchase Christmas merchandise for selling in its store, it had to borrow money from a local bank. This debt owed to the bank is a(n):
A) liability.
B) debit.
C) owners' equity.
D) asset.
E) credit.
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