Which of the Following Is True of Centralization in an Organization

question 44

Multiple Choice

Which of the following is true of centralization in an organization?

• A)Authority is concentrated at the top of the managerial hierarchy.
• B)Subordinates play an important role in decision-making within the company.
• C)It prevents the organization from pursuing its strategy.
• D)It makes middle and first-line managers more flexible and adaptable.
• E)It allows people who are closest to problems to respond to them in a timely manner.

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Definitions:

Entrepreneur

A person who introduces new products or improved technologies and decides which projects to undertake. A successful entrepreneur’s actions will increase the value of resources and expand the size of the economic pie.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.

Law Of Supply

The principle that, all else equal, an increase in the price of goods will lead to an increase in the quantity supplied.

Good

An item or service that satisfies human wants and provides utility, which can be transferred or sold.