Which of These Statements About Decentralization Is FALSE

question 51

Multiple Choice

Which of these statements about decentralization is FALSE?

• A)Organizations decentralize as they grow larger.
• B)Different degrees of decentralization can occur simultaneously in different parts of the organization.
• C)Organizations operating in diverse environments are more effective when they centralize decision making.
• D)Large organizations should worry about having too much decentralization.
• E)Large organizations that remain centralized tend to become less responsive to the external environment.

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Definitions:

Overpricing

Setting the price of a product or service higher than its perceived market value or cost justification, potentially leading to reduced sales or customer dissatisfaction.

Target-Return Pricing

A pricing strategy where the price is set to achieve a specified return on investment or cost.

Creativity in Pricing

The application of innovative and strategic approaches to setting prices with the aim of optimizing profitability and market share.

Markup

The amount added to the cost of a product in setting the final price. It can be based on selling price or on cost.