Which of the Following Is True of Centralized and Decentralized

question 93

Multiple Choice

Which of the following is true of centralized and decentralized authority?

• A) Organizations that share relatively little authority are said to be decentralized, and those that share a lot of authority are said to be centralized.
• B) Most organizations either tend to have a completely centralized or a completely decentralized authority depending on the type of organizational structure.
• C) Supervisors who know whether their employer has a centralized or decentralized structure understand how much authority they can expect to have.
• D) An organization cannot make changes in the degree to which it decentralizes or centralizes authority depending on its strategic plan and goals.

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Definitions:

R&D Expenditures

Financial resources dedicated to research and development efforts aimed at developing new products or enhancing current offerings.

Expected Rate of Return

The anticipated amount of profit or loss an investment is likely to generate relative to its cost.

Interest-Rate Cost of Funds

The Interest-Rate Cost of Funds is the interest rate that financial institutions pay for the funds they use in their business, influencing the rates they charge on loans.

Optimal R&D

Refers to the most efficient level of spending on research and development activities, where the marginal benefit of R&D equals its marginal cost.