Centralization and Decentralization Differ Because

question 31

Multiple Choice

Centralization and decentralization differ because:

• A) centralization hinders coordination, while decentralization facilitates coordination.
• B) centralization prevents top-level managers from making required organizational changes, while decentralization gives top-level managers greater power to make organizational changes.
• C) centralization ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals.
• D) centralization promotes flexibility, while decentralization reduces flexibility.

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Definitions:

Total Income

The sum of all revenues and gains earned by a company during a specific period, including sales, interest, dividends, and other sources of income.

Average Rate of Return

Calculates the average annual return on an investment over its lifetime, taking into account both the capital gains and any income received from the investment.

Estimated Average Annual Income

An approximation of the amount of money one is expected to earn on average each year, considering various income sources over a specified period.

Average Investment

The mean value of all investments held over a specific period, used to assess overall investment performance.