The Primary Disadvantage of Decentralized Operations Is That Decisions Made

question 113

True/False

The primary disadvantage of decentralized operations is that decisions made by one manager may affect other managers in such a way that the profitability of the entire company may suffer.

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Definitions:

Foregone

Something missed or given up, often used in the context of opportunities or profits that were not realized.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a reference rate for various loans.

Revolving Credit

A credit facility that allows a company or individual to borrow up to a pre-approved limit, pay it back, and borrow again.

Commitment Fee

A fee charged by a lender to a borrower for an unused credit line or undisbursed loan.