Centralized Decision Making Is Favored Over Decentralized Decision Making

question 36

Multiple Choice

Centralized decision making is favored over decentralized decision making:

• A) when there are no principal-agent problems.
• B) when decisions need to be made on a case-by-case basis.
• C) when coordinated decisions are essential.
• D) when information that is relevant to the decision is dispersed.
• E) when the firm has a flat organizational structure.

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Definitions:

Cognitive Roots

Fundamental aspects or underpinnings of cognitive processes, including perception, memory, and reasoning, that influence human behavior and thinking.

Prejudice

Preconceived opinion that is not based on reason or actual experience; bias against people, places, or things.

Social

Relating to society or its organization; the interaction between individuals or groups.

Emotional

Relating to feelings or the process of expressing feelings; a psychological state involving thoughts, physiological changes, and an outward expression.