All of the Following Are Advantages of Decentralization Except

question 54

Multiple Choice

All of the following are advantages of decentralization except

• A) Managers make better decisions when closer to the operations of the company.
• B) Expertise in all areas of the business is difficult; decentralization makes it better to delegate certain responsibilities.
• C) Each decentralized operation purchases its own assets and pays for operating costs.
• D) Decentralized managers can respond quickly to customer needs.

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Definitions:

Tender Offer

An offer to purchase some or all of shareholders' shares in a corporation at a specific price for a certain period.

Equity Carve-out

A corporate strategy where a company creates a new, independent company by selling or distributing new shares of its existing business.

Antitrust Issues

Legal matters concerning regulations that prevent monopolies and promote competition, aiming to protect consumers and ensure fair business practices.

Conglomerate

A conglomerate is a large corporation that owns a number of different companies across various industries, often with no common business area.