In an Organization That Has a Decentralized Organizational Philosophy, Decision-Making

question 8

Multiple Choice

In an organization that has a decentralized organizational philosophy, decision-making authority rests in levels closer to the point of service rather than in the executive levels. Benefits of a decentralized organizational philosophy include: (Select all that apply.)

• A) encouraging more input.
• B) supporting greater innovation.
• C) facilitating faster response times.
• D) permitting a narrower span of control.
• E) allowing for more levels of management.

---

Definitions:

Pretax Debt Costs

The expenses related to debt before income taxes are applied, such as interest expenses.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, which can vary based on income level, type of taxpayer, or type of income.

Debt-Equity Ratio

The debt-equity ratio is a measure of a company's financial leverage, indicating the ratio of its total debt to its shareholders' equity.

Unlevered Cost

A cost or rate of return analysis that does not include the impact of debt financing, reflecting the company's cost of capital without leverage.