Which of the Following Is a Disadvantage of a Centralized

question 82

Multiple Choice

Which of the following is a disadvantage of a centralized organizational structure?

• A) lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative
• B) losing top-level management control
• C) putting too much decision-making authority in the hands of lower-level company personnel
• D) making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made
• E) impeding cross-unit coordination and the capture of strategic fits

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Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market that borrowers must pay to obtain funds.

Recognized Gain

The profit realized from the sale of an asset, calculated by subtracting the asset's cost from its selling price and officially recorded in financial statements.

Boot

Additional value or cash that is exchanged in a transaction to even out a trade or sale.

Book Value

The net value of an asset or a company calculated by total assets minus liabilities and intangible assets such as goodwill.