Which of the Following Would NOT Be a Reason for Decentralization

question 2

Multiple Choice

Which of the following would NOT be a reason for decentralization?

• A)Managers will make decisions for their own benefit, rather than the organization's benefit.
• B)Lower level managers have better access to information.
• C)Upper management can spend more time focusing on strategic planning and decision making.
• D)Lower level managers with decision-making ability are more motivated.

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Definitions:

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial assets, sectors, or industries.

Management Risk

The potential for losses due to the decisions and actions of an organization's management team.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification and is often influenced by external factors like political, economic, and social changes.

Political Upheaval

Significant disruption or change in the governing structure or policy of a country, often accompanied by protests or conflict.