Which of the Following Statements Is Most Likely to Be

question 17

Multiple Choice

Which of the following statements is most likely to be true of a decentralised organisation?

• A) Ownership and commitment to a strategy is likely to be greater than in a centralised structure.
• B) Managers are likely to be less motivated than in a centralised structure.
• C) Poor decision making is likely to result with so many junior managers making them.
• D) There will be less opportunity to make your mark and get on.

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Definitions:

Agent Liability

Refers to the legal responsibility of an agent to their principal, including obligations and potential for repercussions if the agent acts outside their authority or against the interests of the principal.

Principal

In law, the person who authorizes an agent to act on their behalf; in finance, the original amount of money invested or loaned.

Vicarious Liability

The liability or responsibility imposed on a person, a party, or an organization for damages caused by another; most commonly used in relation to employment, with the employer held vicariously liable for damages caused by its employees.

Principal-Employer

The party in a contractual relationship who has the right to control the work of the employee or agent and is responsible for their actions.