ACCA BT · Chapter 1 · Question 9 of 11
A company transfers its payroll, accounts payable and credit control activities from each of its regional subsidiaries into one central unit that provides these services to the whole group. What is this arrangement called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A shared services centre
Explanation
A shared services centre consolidates support activities from several parts of a group into a single internal unit. Outsourcing would involve a third-party provider, decentralisation pushes decision-making down rather than consolidating it, and a hollow organisation outsources most non-core processes externally.
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