Which of the Following Is a Disadvantage of Decentralization

question 37

Multiple Choice

Which of the following is a disadvantage of decentralization?

• A)Management does not have time to concentrate on long-term strategic planning.
• B)Unit managers may not understand the big picture of the company.
• 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:

Income Statement

A financial report that shows a company's revenues, expenses, and profits or losses over a specific period, detailing its financial performance.

External Reporting

The process of preparing and disclosing financial statements and other information to parties outside the organization.

Statement of Cash Flows

A statement of financial position that displays the influences of adjustments in balance sheet accounts and income on cash and cash equivalents, segmenting the analysis into operating, investing, and financing activities.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific time period, concluding with the net profit or loss.