Which of the Following Factors Encourage the Use of Decentralized

question 2

Multiple Choice

Which of the following factors encourage the use of decentralized decision making in subsidiary operations?

• A) Homogeneous product lines
• B) Low level of product diversification
• C) Weak volume-to-unit cost relationship
• D) High degree of technology

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Definitions:

Commercial Banks

Financial institutions that offer services such as accepting deposits, providing business loans, and offering basic investment products.

Credit Market

A financial market where borrowers can obtain funds from investors or lenders through the issuance of different types of debt instruments.

Prime Interest Rate

The interest rate that banks charge their most creditworthy customers, often used as a benchmark for setting rates on various types of loans and credit.

Interest Rates

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount annually.