Which of These Statements About Decentralization Is FALSE

question 51

Multiple Choice

Which of these statements about decentralization is FALSE?

• A)Organizations decentralize as they grow larger.
• B)Different degrees of decentralization can occur simultaneously in different parts of the organization.
• C)Organizations operating in diverse environments are more effective when they centralize decision making.
• D)Large organizations should worry about having too much decentralization.
• E)Large organizations that remain centralized tend to become less responsive to the external environment.

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Definitions:

Sales

Transactions involving the exchange of goods or services for money, contributing to a company's revenue.

Break-Even Point

The Break-Even Point is the level of production or sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Sales Dollars

Sales dollars refer to the total revenue generated from goods or services sold by a company, expressed in monetary terms.

Pretax Income

The income of a company before tax is deducted.