Which of the Following Statements Regarding the Structure of Organisations

question 75

Multiple Choice

Which of the following statements regarding the structure of organisations is false?

• A) When decision-making authority is spread among too many managers,managers may become so concerned with their own area of responsibility that they lose sight of the company's overall focus.
• B) In a decentralised organisation,decision-making authority is confined to top-level management.
• C) In a decentralised organisation,there may be a lack of coordination and communication between segments.
• D) Decentralisation may make it difficult for managers to share unique and innovative ideas.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a stake in the company's profits and decision-making.

Limited Partnership

A business partnership where at least one partner has unlimited liability and one or more partners have limited liability, only responsible for the money they have invested.

Legal Entity

An organization or structure that is recognized by law as having rights and responsibilities, such as a corporation, partnership, or trust.

Stock

Shares of ownership in a company, representing a claim on the company's assets and earnings.