Which of the Following Is True of Decentralization

question 115

Multiple Choice

Which of the following is true of decentralization?

• A) Under decentralization, lower-level managers are responsible only for implementing decisions.
• B) Decentralization allows higher management to make better decisions by using local information.
• C) It protects segments of a company from competitive pressures.
• D) It is usually achieved by creating units called divisions.
• E) Decentralization allows only the CEO of a company to make all important decisions.

---

Definitions:

Quotas

Limitations set by a government on the amount of a specific good that can be imported or exported during a specified time frame, often used to protect domestic industries.

Reducing Imports

A strategy aimed at decreasing the volume of goods and services a country buys from abroad, often to support domestic production.

Voluntary Agreements

Contracts or arrangements entered into freely by parties without coercion, commonly seen in business or employment contexts.

Subsidies

Financial support provided by governments to entities, aimed at reducing the cost of services and goods, promoting economic and social policies.