An Advantage of Centralization Is That It ________

question 91

Multiple Choice

An advantage of centralization is that it ________.

• A) keeps the organization focused on organizational goals
• B) gives top managers ample time to focus on strategic decision-making
• C) allows lower-level managers to make on-the-spot decisions
• D) promotes flexibility and responsiveness within an organization

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Definitions:

Tiered Group

A structure of multiple groups or entities arranged in a hierarchy, where control or ownership is exercised through several layers.

Notional Profits

Hypothetical or estimated profits based on assumptions or projections, not actual earnings.

Reciprocal

Something that is given or done in return for something else; in financial contexts, it often relates to mutual agreements or exchanges.

Consolidated

Pertaining to the aggregation of financial statements of a parent company with those of its subsidiaries to present as a single entity for financial reporting purposes.