Which of the Following Is a Reason for Decentralization

question 49

Multiple Choice

Which of the following is a reason for decentralization?

• A) Ease of gathering and using local information.
• B) Focusing of central management.
• C) Training and motivating segment managers.
• D) Exposing segments to market forces.
• E) All of these.

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Definitions:

Beta Coefficient

Amount of systematic risk present in a particular risky asset relative to an average risky asset.

Capital Gains Yield

The price appreciation component of a stock's total return, calculated as the increase in the stock price divided by its initial price.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.