Which of the Following Would Be a Reason for Decentralization

question 17

Multiple Choice

Which of the following would be a reason for decentralization?

• A)Managers will make decisions for their own benefit,rather than the organization's benefit.
• B)Upper-level managers have better access to information.
• C)Upper management can spend more time focusing on strategic planning and decision making.
• D)Lower-level managers with decision-making ability are less motivated.

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Definitions:

Current Earnings

The net income or profit earned by a company during a particular reporting period, excluding any extraordinary items.

Capital Budgeting

The act of strategizing and overseeing a firm's long-term commitments to investments, projects, and assets.

Cash Flows

Cash flows refer to the net amount of cash and cash-equivalents being transferred into and out of a business, indicating its financial health.

Partnership Income

The share of earnings distributed to partners in a partnership business, typically based on the terms of the partnership agreement.