Which of the Following Is NOT a Characteristic of a Highly

question 86

Multiple Choice

Which of the following is NOT a characteristic of a highly centralized organizational structure?

• A) Top-level managers retain decision authority for most strategic and operating activities.
• B) Strict control and enforcement of detailed procedures backed by rigorous managerial accountability is the most reliable way to keep the daily execution of strategy on track.
• C) Tight control from the top is a more effective means for coordinating company actions and makes it easy to fix accountability when things do not go well.
• D) One of the basic tenets is that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and, further, they lack the knowledge and judgment to make wise decisions about how best to do their work.
• E) The decision about where to draw the divisional lines depends foremost on the nature of the relatedness and the strategy-critical building blocks, in terms of which businesses have key value chain activities in common.

---

Definitions:

No Monopoly Power

A market condition where no single seller can influence prices or market conditions due to the presence of numerous competitors.

Monopolistically Competitive

A market structure characterized by many firms offering similar but not identical products, leading to competition based on product differentiation.

Typical Firm

A typical firm refers to an average or representative entity in an industry characterized by the industry's common practices, production processes, and competitive strategies.

Consumer Surplus

The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.