When Considering Centralized and Decentralized Structures,which One Tends to Be

question 31

Multiple Choice

When considering centralized and decentralized structures,which one tends to be more ethical and why? 

• A)Decentralized because of the clear rules that dictate appropriate behavior in business
• B)Centralized because it is easier to uproot unethical activities
• C)Centralized because of the strict formalization and implementation of ethics policies and procedures
• D)Decentralized because they give employees more decision making authority
• E)Both types of organizational structure are equally ethical

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Definitions:

Accounting Costs

Costs that are recognized in the financial statements and involve actual cash flow, such as salaries, rent, and materials.

Implicit Costs

Costs that are not directly paid out or incurred in money but represent the opportunity cost of using resources owned by the firm for its own production instead of renting them out or selling.

Explicit Costs

Direct, out-of-pocket payments made by a business for resources and services used in production.

Incremental Cost

The additional cost associated with producing one more unit of a product or service.