One of the Benefits of Decentralization Is That

question 9

Multiple Choice

One of the benefits of decentralization is that:

• A)it lowers the opportunity cost of the time of the higher management.
• B)local managers have a strong incentive to maximize a firm's value.
• C)there are economies of scale if local managers take pricing decisions.
• D)full use can be made of the central manager's knowledge and expertise.

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Definitions:

Reflex Response

An automatic, involuntary reaction to a specific stimulus without conscious control, such as blinking in response to a puff of air.

Classical Conditioning

An associative learning process in which two stimuli are paired repeatedly, causing a response that initially comes from the second stimulus to eventually come from the first stimulus alone.

Operant Conditioning

A learning process by which the strength of a behavior is modified by reinforcement or punishment.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any need for prior learning or conditioning.