Which of the Following Is Often Not a Disadvantage of Decentralisation

question 51

Multiple Choice

Which of the following is often not a disadvantage of decentralisation?

• A) Decreased job satisfaction for lower-level managers.
• B) Lack of coordination and communication between segments.
• C) Lack of company focus as lower-level managers may make decisions that benefit their own particular segment.
• D) Higher training costs for lower-level managers.

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Definitions:

Spontaneous Financing

Financing that arises naturally from the normal operation of a business, such as trade credit from suppliers.

Seasonal Working Capital

Additional funds a business may need at certain times of the year to manage increased operational activities.

Clean-Up Requirements

Environmental or legal directives that mandate the remediation of pollution or contaminants from a site.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender, which can reduce the effective amount of loan available to the borrower.