When Decision Making Is Decentralized

question 104

Multiple Choice

When decision making is decentralized

• A) Upper management does not make decisions
• B) Decision-making authority is delegated throughout the organization
• C) The important information in an organization is very general
• D) Organizations are less likely to experience agency costs concerning goal congruence

---

Definitions:

Linear Regression Model

An approach in statistics that aims to represent the connection between a dependent variable and one or more independent variables through the application of a linear equation to the data observed.

Random Error Term

A variable in statistical models that represents unexplained or random fluctuations in the observed data, not accounted for by the explanatory variables.

Values

Principles, standards, or qualities considered inherently important or desirable in a certain context.

Correlation Analysis

A statistical method used to evaluate the strength and direction of the linear relationship between two quantitative variables.