Which of the Following Statements About Centralization Is TRUE

question 83

Multiple Choice

Which of the following statements about centralization is TRUE?

• A)Centralization typically increases costs.
• B)Retailer stores are required to hire more managers with centralization.
• C)Centralization allows management to better tailor its offering to the needs of the local market.
• D)Centralization provides the opportunity to have the best people with the greatest expertise make decisions for the entire corporation.

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Definitions:

Monopoly Power

The ability of a single seller to control market prices and exclude competitors within a particular market.

Tying Contracts

Agreements where the sale of one product (the tying product) is conditional on the purchase of a second, distinct product (the tied product).

Major Industry

Denotes a leading sector of the economy that plays a significant role in economic development, characterized by a high level of output and employment.

Restructuring

The process of reorganizing a company's structure, operations, or finances with the aim of making it more profitable or better organized for its present needs.