An Advantage of Decentralization Is That It

question 81

Multiple Choice

An advantage of decentralization is that it:

• A) allows top managers to keep the organization focused on organizational goals.
• B) simplifies the coordination process.
• C) may increase the motivation of managers.
• D) ensures predictable behavior.

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Definitions:

Stock Prices

Stock prices represent the current market price for a share of a company's stock, reflecting the value that the market places on the company's future financial prospects.

Short and Long Run

Terms used in economics to distinguish between time periods; the short run considers some factors as fixed, while in the long run, all factors of production are variable.

Loan Covenant Violations

Occur when a borrower fails to meet one or more conditions of the loan agreement, potentially leading to penalties or the loan being called due.

Accounting Changes

Amendments in accounting principles, estimates, or the reporting entity that affect the financial statements of a company.