Chapter 1 & 2 Flashcards
1
Q
Length of scalar chain
A
Referring to how many levels exist between the directors of a company (the owners) and the lowest level employee
2
Q
Benefits of a decentralised company
A
- faster reactions
- faster and more effective communication between levels
3
Q
Cons of a decentralised company
A
- managers bear more responsibility
- If a manager is not effective, this will have a larger knock-on effect on the rest of the company since a larger number of employees report to them
4
Q
Main financial statements (4)
A
- P&L
- Balance Sheet
- Statement of Cash Flows
- Statement of Changes in Equity
5
Q
A
