Which of the Following Is Not a Cost of Decentralization

question 50

Multiple Choice

Which of the following is not a cost of decentralization?

• A) Managers in a decentralized organization might have a narrow focus on their own unit's performance rather than the attainment of their organization's overall goals.
• B) Managers in a decentralized organization might make the same types of decisions that are being made at headquarters resulting in administrative duplication.
• C) Delegating decision making to the lowest level possible enables an organization to respond in a timely way to opportunities and problems.
• D) Delegating decision making to the lowest level possible may lead to poor decisions based on incomplete information.

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Definitions:

Factors of Production

The assets employed to produce goods and services, encompassing land, labor, capital, and entrepreneurship.

Command Economy

A type of economic system where production, investment, prices, and incomes are determined centrally by a government.

Central Authority

An organization or governing body that holds the primary power and control over decision-making and regulation within a certain area or scope.

Laissez-Faire Economy

An economic system where transactions between private parties are free from government intervention such as regulation, privileges, tariffs, and subsidies.