Which of the Following Statements Is True of Decentralization

question 27

Multiple Choice

Which of the following statements is true of decentralization?

• A) A decentralized structure does not empower employees to handle customer complaints directly.
• B) A decentralized structure forces top management to lose some control over the organization.
• C) Decentralization slows responsiveness to local needs for decision making.
• D) A decentralized structure only delegate recurring and structured decisions to lower levels.

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Definitions:

Debt-to-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Year 2

Typically refers to the second year in a designated time frame, often used in financial and performance analysis.

Times Interest Earned Ratio

A financial metric that measures a company’s ability to meet its interest obligations based on its current earnings before interest and taxes.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by its shareholders' equity.