Which of the Following Statements Is True of Decentralization

question 80

Multiple Choice

Which of the following statements is true of decentralization?

• A) A decentralized structure does not empower employees to handle customer complaints directly.
• B) A decentralized structure forces top management to lose some control over the organization.
• C) Decentralization slows responsiveness to local needs for decision making.
• D) A decentralized structure only delegates recurring and structured decisions to lower levels.

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Definitions:

Political Risk

The risk of loss faced by investors, corporations, and governments due to political decisions, unrest, or instability in a country.

Correlation Risk

Correlation risk is the risk of unexpected changes in the correlation between asset returns, affecting portfolio risk and valuation.

Semi-Strong Form

A hypothesis suggesting that all publicly available information is already reflected in stock prices, negating the ability to earn excess returns.

Information Announcement

A disclosure of new, relevant details intended to inform investors, employees, and the public about a company's financial health, operational changes, or other significant news.