Describe the Concept of Decentralization as Applied to Large Business

question 81

Essay

Describe the concept of decentralization as applied to large business organizations.Why do large organizations practice decentralization?

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Definitions:

Compounded Continuously

A method of calculating interest where the amount earned is constantly reinvested, leading to exponential growth over time.

Effective Annual Rate

The effective annual rate is the real return on an investment, taking into account the effect of compounding interest over a year.

Annual Rate

The interest rate charged per year on a loan, or earned on an investment, not accounting for the effect of compounding within that year.

Actual Rate

The real interest rate or return rate earned on an investment, as opposed to the nominal or advertised rate.