​Which of the Following Is True of a Decentralized Company

question 105

Multiple Choice

​Which of the following is true of a decentralized company?

• A) In a decentralized company, lower-level managers are responsible only for implementing decisions.
• B) In a decentralized company, overall profit margins can mask inefficiencies within various subdivisions.
• C) In a decentralized company, the owner makes all important operating and strategic decisions.
• D) Managers in a decentralized company make and implement fewer decisions than do managers in a centralized firm.
• E) Local managers in a decentralized company can make better decisions using local information.

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Definitions:

Gross Salary

The total of an employee's regular earnings before taxes and other deductions.

Annual Salary

The total amount of money earned by an employee in a year, not including bonuses or other extra payments.

Salary Per Period

Salary per period refers to the total compensation an employee receives in each payment cycle, such as monthly or bi-weekly.

Retail Sales

The total value of goods sold to consumers by retailers.