Which of the Following Is a Disadvantage of Decentralization

question 79

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:

Currency Swaps

Bilateral agreements to exchange periodic payments where the payments are based in two different currencies.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers indirectly.

LIBOR

London Interbank Offered Rate; the rate that large banks in London charge one another.

Floating-Rate Debt

A type of debt instrument with interest rates that adjust periodically based on a benchmark interest rate or index.