Upper management of a growing company has decided its organization is too large to operate as one unit. In fact, some in uppermanagement believe parts of the company are not as profitable as they should be. They have decided to create different segments of thecompany based on similar groups of products manufactured and have appointed managers of each of these segments. Which of thefollowing would be a good reason for upper management to make this decision?1. Each segment manager can be held responsible for income generated by segment assets.II. Duplication of work across the organization will decline.III. Segment managers have better information to make decisions than upper management.IV. Upper management can build future leaders by developing segment managers' decision-making skills.V. Communication across the company will be strengthened.O All statements (I-V) are good reasonsII, III, IVO I, II, IV, VO I, III, IVOLILV

All of the options presented could potentially be good reasons for upper management to make the…

Upper management of a growing company has decided its organization is too large to operate as one unit. In fact, some in upper management believe parts of the company are not as profitable as they should be. They have decided to create different segments of the company based on similar groups of products manufactured and have appointed managers of each of these segments. Which of the following would be a good reason for upper management to make this decision? L Each segment manager can be held responsible for income generated by segment assets. II. Duplication of work across the organization will decline. III. Segment managers have better information to make decisions than upper management. IV. Upper management can build future leaders by developing segment managers' decision-making skills. V. Communication across the company will be strengthened.

Upper management of a growing company has decided its organization is too large to operate as one unit. In fact, some in upper management believe parts of the company are not as profitable as they should be. They have decided to create different segments of the company based on similar groups of products manufactured and have appointed managers of each of these segments. Which of the following would be a good reason for upper management to make this decision? L Each segment manager can be held responsible for income generated by segment assets. II. Duplication of work across the organization will decline. III. Segment managers have better information to make decisions than upper management. IV. Upper management can build future leaders by developing segment managers' decision-making skills. V. Communication across the company will be strengthened.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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