Which of the Following Is a Disadvantage of Decentralization That

question 181

Multiple Choice

Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence?

• A)Unit managers may not understand the big picture of the company.
• B)Management does not have time to concentrate on long-term strategic planning.
• C)Unit managers have decreased motivation and retention.
• D)Managers receive training and experience to allow advancement in the organization.

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Definitions:

Adjusted Betas

Betas that have been modified to account for the tendency of a stock's market risk measure to regress towards the mean over time, used in finance to predict future betas.

Market Index

A statistical aggregate that measures the performance of a basket of stocks to represent a particular market or sector.

Beta Coefficients

Statistical measures indicating the volatility of a stock or portfolio in comparison to the volatility of the overall market.

Industry Group

A classification of companies that conduct similar types of business, used for analysis and comparison within the stock market.