Which of the Following Is an Argument Favoring Decentralization

question 55

Multiple Choice

Which of the following is an argument favoring decentralization?

• A) It can facilitate coordination.
• B) It can help ensure that decisions are consistent with organizational objectives.
• C) It can give top-level managers the means to bring about needed major organizational changes.
• D) It permits greater flexibility.

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Definitions:

Consolidation

Consolidation refers to the process of combining several smaller entities, debts, or accounts into a single, more comprehensive unit for management efficiency.

Restructuring

The act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized.

Asset Purchase

An asset purchase involves buying the assets of a company, such as equipment, inventory, and property, rather than buying the company's stock.

Poison Pill

A strategy used by companies to prevent or discourage hostile takeovers by making the company less attractive to the potential acquirer.