Which of the Following Statements Is True of Decentralization

question 138

Multiple Choice

Which of the following statements is true of decentralization?

• A) It does not require employees to understand their firm's mission, goals, and strategy.
• B) A small number of people at the top of a firm have the power to make decisions.
• C) Employee morale decreases with an increase in decentralization.
• D) It allows employees to respond to customer needs more quickly and effectively.

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Definitions:

Common Stock

An ownership stake in a corporation that provides the shareholder with voting capabilities and a claim on the company's profits through dividends.

Stock Of Small Firms

Stock Of Small Firms refers to the equity securities issued by companies with a small market capitalization, often characterized by higher volatility and potentially higher growth prospects than larger companies' stocks.

Canadian Common Stocks

Shares of ownership in Canadian corporations that represent a claim on the company's earnings and assets.

Rate Of Inflation

The increase speed of overall service and product prices, which in turn, lowers the capacity to make purchases.