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:

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity, by calculating the present value of expected future cash flows.

Discounted Payback

A capital budgeting method that calculates the amount of time needed to recoup an investment based on its discounted cash flows.

Profitability Index

A calculation used to assess the desirability of an investment, defined as present value of future cash flows divided by initial investment.

Net Present Value

Net Present Value (NPV) is a financial measurement that calculates the current value of expected future cash flows from an investment, adjusted for time and interest.