Which of the Following Is True of Decentralization

question 1

Multiple Choice

Which of the following is true of decentralization?

• A)It concentrates the decision-making authority at the top.
• B)It is highly effective for businesses where risky decisions are to be made.
• C)It reduces an organization's ability to react to changes quickly.
• D)It isolates lower-level managers from decision making.
• E)It is characteristic of organizations that operate in complex environments.

---

Definitions:

11%

11% typically refers to an interest or annual rate, indicating that 11 percent of the principal amount will be paid in interest over a year.

Nominal Rate

The promoted or declared rate of interest on a loan or investment, excluding the impacts of compounding and inflation.

Compounded Monthly

Interest calculation method involving the addition of interest to the principal sum of a loan or deposit, repeated every month.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest earnings on interest.