Which of the Following Is Not a Cost of Decentralization

question 14

Multiple Choice

Which of the following is not a cost of decentralization of corporate decision making?

• A)Incentive problems
• B)Coordination costs and failures
• C)Less effective use of central information
• D)More effective use of local knowledge

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Definitions:

External Environment

Outside forces and conditions that influence the operations and outcomes of an organization or system.

Communes

Communities where people live and work together, often sharing common interests, property, possessions, and values, usually outside of mainstream society.

Management Science

An interdisciplinary study that uses statistical methods, mathematical modeling, and analytical approaches to decision-making and problem-solving in business and other organizations.

Mathematical Techniques

The use of mathematical methods and models to solve problems or analyze data within various fields.