An Advantage of Decentralization Is That It

question 62

Multiple Choice

An advantage of decentralization is that it

• A) creates greater responsiveness to local needs.
• B) focuses manager's attention on the organization as a whole.
• C) does not result in a duplication of activities.
• D) reduces the cost of gathering information.
• E) increases loyalty toward the organization as a whole.

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Definitions:

Lehman Brothers

A global financial services firm that declared bankruptcy in 2008, an event that significantly contributed to the global financial crisis.

Asset Allocation

The investment strategy of dividing a portfolio among different asset categories, such as stocks, bonds, and cash to minimize risk and maximize returns.

Investment Adviser

A person or organization that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or through written publications.

Investment Process

A systematic approach or series of steps taken by investors or fund managers to identify, select, and allocate funds to various securities or investments to achieve specific financial goals.