What kind of organization becomes more responsive to its environment by breaking the company into more manageable units?

A) Centralized
B) Decentralized
C) Geographic
D) Process-oriented
E) Customer departmentalized

Answer: B
Explanation: B) In doing so, the organization can operate more efficiently in complex, rapidly changing environmental conditions.

Business

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The loss ratio is the ratio of incurred losses plus loss adjustment expenses to earned premium.

a. true b. false

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The adequacy of capital for commercial banks as measured by regulatory authorities is:

a. a composite of equity capital and total assets b. a measure of investment success c. based on the total amount of deposits of a bank d. based on the ratio of federal government obligations to deposits

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