When Decision Making Is Decentralised

question 52

Multiple Choice

When decision making is decentralised

• A) Upper management does not make decisions
• B) Decision-making authority is delegated throughout the organisation
• C) The important information in an organisation is very general
• D) Organisations are less likely to experience agency costs concerning goal congruence

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Definitions:

MR (Marginal Revenue)

The increase in revenue that results from selling one additional unit of a product or service.

MC (Marginal Cost)

The additional cost incurred in producing one more unit of a good or service.

Downward-Sloping Demand

A representation of the relationship between price and quantity demanded, indicating that as price decreases, demand increases.

Reasonable Substitutes

Alternative products or services that can satisfactorily replace others, meeting the same needs or wants.