1) When operational responsibility is centralized, all major planning and operating decisions are made by ______. A: line workers B: top management C: unit managers D: division managers 2) ____is the excess of operating income over minimum acceptable operating income. A: Financial leverage B: Profit margin C: Residual income D: Unearned income 3) Which of the following is the main objective of internal processes? A: To focus on a company's research and development efforts in developing new products and improving current products B: To focus on improving the company's operations to eliminate waste and inefficiencies C: To focus on exceeding customer expectations D: To focus on increasing the future value of the company by educating and training employees and managers 4) Which of the following is a disadvantage of decentralization? A: Decentralization of operations is not desirable for large companies B: Decentralization of operations discourages training for managers C: Decentralization of operations results in duplication of assets and expenses across division D: Decentralization of operations prevents managers from becoming experts in their areas of operation