Which of the Following Statements Is True Concerning Decentralization

question 107

Multiple Choice

Which of the following statements is true concerning decentralization?

• A)Decentralization helps train managers.
• B)Decentralization provides a basis for evaluating manager performance.
• C)Decentralization motivates managers.
• D)All of the answers are correct.

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Definitions:

Convex Preferences

A preference structure where the consumer prefers mixed bundles of goods to extreme bundles, represented graphically by a bowed-inward indifference curve.

Monotonic Preferences

A preference pattern where more of a good is always preferred to less, maintaining a consistent order.

Utility Function

A mathematical representation of how different combinations of goods or services lead to different levels of happiness or satisfaction for an individual.

Income

Earnings from work or investments, often measured in terms of money received over a period of time.