Indicate Whether Each of the Following Is More Descriptive of Centralized

question 47

Short Answer

Indicate whether each of the following is more descriptive of centralized (C)or decentralized (D)decision-making.
____ 1. Decision-makers may not fully understand organizational goals and strategies
____ 2. Decisions are more easily made for the benefit of the overall organization
____ 3. Decisions are made by individuals with the greatest knowledge
____ 4. Good for organizations with stable and less complex operations
____ 5. Lack of coordination among subunits may lead to duplication in efforts
____ 6. Although less monitoring of decisions is usually needed, more monitoring of employee effort is necessary.
____ 7. Managers are motivated more often through incentive contracting rather than by monitoring
____ 8. Poor quality decisions due to lack of information
____ 9. More timely decision-making
____ 10. Upper management can focus on organizational strategies

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Definitions:

Operating Expenses

Costs associated with running the day-to-day operations of a business which are necessary to keep the business functioning, excluding the cost of goods sold.

Gross Profit

The distinction between the income from sales and the expense of goods sold prior to subtracting costs for overheads, wages, taxes, and interest.

Cost of Goods Sold

This is an accounting term that refers to the direct costs attributable to the production of the goods sold by a company.

Income from Operations

Revenue from a company's everyday business activities minus the costs and expenses associated with those operations.