Which of the Following Is NOT One of the Chief

question 51

Multiple Choice

Which of the following is NOT one of the chief advantages of a decentralized organizational structure?

• A) It reduces the size of the corporate bureaucracy and the layers of management.
• B) It makes it easy to fix accountability when company performance targets are not met and cross-business strategic fits are loosely applied.
• C) It promotes greater motivation and involvement in the business on the part of more company personnel.
• D) It spurs new ideas and creative thinking.
• E) It encourages lower-level managers and rank-and-file employees to exercise initiative and act responsibly.

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Definitions:

Output Level

The quantity of goods or services produced by a firm or an economy within a given period.

Total Variable Costs

The sum of expenses that vary directly with the level of production, such as materials and labor costs.

Total Costs

The aggregate amount of money spent on producing goods or delivering services, which includes both constant and fluctuating costs.

Marginal Cost

The cost incurred by producing one more unit of a product, which is pivotal for decision-making regarding production levels.