Which of the Following Factors Describes an Environment in Which

question 28

Multiple Choice

Which of the following factors describes an environment in which a high degree of decentralisation is desired?

• A)The environment is complex and uncertain.
• B)Lower-level managers do not want to have a say in decisions.
• C)Decisions are significant.
• D)The company is large.
• E)The organisation is facing a crisis or the risk of company failure.

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Definitions:

Decrease in Supply

A reduction in the availability of a particular good or service in the market.

Downward-Sloping Demand

A fundamental economic principle stating that, ceteris paribus, the quantity demanded of a good falls as the price of the good rises, illustrated by a downward-sloping demand curve.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.