Which of the Following Is NOT a Benefit of Decentralization

question 73

Multiple Choice

Which of the following is NOT a benefit of decentralization?

• A) Lower-level managers have the best information concerning local conditions and therefore may be able to make better decisions than their superiors.
• B) Managers acquire decision-making ability and other management skills that help them move upward in the organization, assuring continuity of leadership.
• C) Managers enjoy higher status from being independent and thus are better motivated.
• D) Managers save time dealing with managers from other segments regarding transfer prices.

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Definitions:

Small Firms

Businesses characterized by a limited number of employees, revenue, or assets, often identified by their flexible operations and personalized customer interactions.

Competitive Today

The state of being able to maintain an edge over rivals in the current market through strategies, practices, and innovations.

Product/Service Quality

The degree to which a product or service meets or exceeds customer expectations in terms of performance, reliability, and satisfaction.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in order to bring new products, services, or ideas to the market.