Which of the Following Must Be True for a Firm

question 40

Multiple Choice

Which of the following must be true for a firm to efficiently employ centralized decision-making?

• A) The decision-relevant information must be dispersed.
• B) The employer and the employees must have compatible interests and objectives.
• C) A very low degree of coordination is required between the various departments.
• D) The organization structure must informal.
• E) There must be significant principal-agent problems.

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Definitions:

Coaching Style

A method or approach adopted by a coach to facilitate learning, improvement, and development in an individual or team.

Participating Style

A leadership approach that involves including team members in the decision-making process, emphasizing collaboration and shared responsibility.

Telling Style

Rephrased: A directive manner of leadership where the leader explicitly outlines what needs to be done.

Member Satisfaction

The level of contentment or satisfaction individuals feel as members of a group or organization.