A Decentralized Organization Does All the Following EXCEPT It

question 58

Multiple Choice

A decentralized organization does all the following EXCEPT it:

• A)encourages local success rather than organizational success.
• B)trains employees in skills needed for decision making.
• C)assigns responsibility to front-line employees.
• D)adapts to the local business environment.

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Definitions:

Marginal Cost

Marginal cost is the additional cost incurred from producing one more unit of a good or service, vital for decision-making on production levels.

Purely Competitive Firm

A company in a market where there are many buyers and sellers, the products are homogeneous, and there are no barriers to entry or exit, leading to zero economic profit in the long run.

Sinking Funds

Specialized funds set aside or saved by a company to repay debt or bonds, or to replace capital assets in the future.

Unrecoverable Costs

Expenses that have been paid and cannot be recovered, often referred to as sunk costs, which should not factor into future spending decisions.