An Important Disadvantage of Decentralization Is That Managers May Engage

question 98

True/False

An important disadvantage of decentralization is that managers may engage in suboptimal behavior.

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Definitions:

Discontinued Operations

Components of a business, such as a department or segment, that have been disposed of or are designated for disposal.

Significant Component

A major part or element of a larger system that plays a critical role in the system's overall function or performance.

Liquidity Ratios

Measures of the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.

Short-Term Obligations

Financial liabilities that are due to be paid within one year.