Which of the Following Is an Advantage of Decentralization

question 10

Multiple Choice

Which of the following is an advantage of decentralization? 

• A) ​It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses. 
• B) ​It helps companies respond to the demands of different markets, especially when the company sells in different countries.  
• C) ​It develops employee capabilities throughout a company and leads to faster decision making and more satisfied customers and employees.  
• D) ​It attempts to overcome the deficiencies in specialized work by giving workers the authority and control to make meaningful decisions about their work.

Understand the concept of market risk, including how beta measures the sensitivity of a stock's returns to market movements.

Comprehend the benefits of diversification in reducing investment risk.

Differentiate between diversifiable and non-diversifiable (systematic) risk.

Calculate and interpret standard deviation as a measure of risk in investment returns.

---

Definitions:

Total Assets Turnover

A financial ratio that measures a company's efficiency in using its assets to generate revenue.

Sales

Revenue generated from the sale of goods or services.

Total Assets

The sum of all current and long-term assets owned by a company, reflected on the balance sheet.

Net Sales

The revenue from goods or services sold by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.