alleryStart learning →Most small businesses are described as having which management structure?
AConstitutional
BCentralized
CCeremonial
DCircumstantial
Answer & Solution
Correct answer: B. Centralized
1. The question is where decision-making authority sits.
2. In a small firm the owner usually decides nearly everything.
3. Most small businesses are centralized in that the owner makes all decisions.
4. That covers products, services and strategic direction.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 9 'Responsibility Accounting and Decentralization', sections 9.1-9.4_
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