All of the Following Are Advantages of Decentralization Except

question 114

Multiple Choice

All of the following are advantages of decentralization except:

• A) Managers make better decisions when closer to the operation of the company.
• B) Expertise in all areas of the business is difficult, decentralization makes it better to delegate certain responsibilities.
• C) Each decentralized operation purchases their own assets and pays for operating costs.
• D) Decentralized managers can respond quickly to customer satisfaction and quality service.

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Definitions:

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Business Investment

The act of allocating resources, usually in the form of capital, to create, expand, or improve a business's assets.

Required Reserves

The minimum amount of funds that a bank or depository institution must hold in reserve against specified deposit liabilities.

Excess Reserves

are the funds that banks hold over and above the required minimum reserves mandated by the central bank.