Which of the Following Is a Disadvantage of a Decentralized

question 106

Multiple Choice

Which of the following is a disadvantage of a decentralized organization?

• A)Managers' goals are congruent with the goals of the company as a whole.
• B)Some activities may be duplicated and incur unnecessary costs.
• C)Managers with the highest authority may take inappropriate decisions.
• D)Managers may take more time to respond to changing circumstances.

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Definitions:

Income Effect

The relationship between changing income levels in an economy or for individuals and the subsequent effect on goods and services demand.

Substitution Effect

Describes how consumers react to an increase in a good's price by substituting another good, affecting the quantity demanded.

Marginal Utility

The additional utility or enjoyment derived from the consumption of one more unit of a product or service.

Optimal Consumption

The mix of goods and services that maximizes the utility or satisfaction of a consumer given their budget constraint.