Which of the Following Results from Decentralization

question 47

Multiple Choice

Which of the following results from decentralization?

• A) It results in better local decision-making by central management as they are in contact with immediate operating conditions.
• B) It results in better implementation of decisions as central management is charged with both making and implementing decisions.
• C) It results in the usage of a firm's resources to maximize firm value by the lower-level managers.
• D) It results in enhanced competition as segments are protected from dealing with market forces.
• E) All of these.

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Definitions:

Fixed Expenses

Financial obligations that stay uniform in spite of changes in manufacturing or sales figures, like leasing expenses, salaries for workers, and insurance outlays.

Operating Leverage

A financial concept that measures a company's fixed costs as a percentage of its total costs, indicating how a change in sales will impact profits due to fixed expenses.

Wire Strippers

A hand tool used to strip the insulation from electric wires.

Manufacturer

A person or company that makes goods for sale, typically involving machinery and labor.