Discuss the Differences Between Centralized and Decentralized Decision Making

question 83

Essay

Discuss the differences between centralized and decentralized decision making. Why would a firm decentralize its operations?

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility, and less than 1 indicates lower volatility.

Standard Deviation

A measure of the dispersion or variation in a distribution or set of data, indicating how much individual values differ from the mean.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, expressed as a percentage.

Expected Returns

The anticipated amount of profit or loss an investment is projected to generate.