What Factors Typically Lead a Firm to Centralize Decision Making

question 7

Essay

What factors typically lead a firm to centralize decision making? What causes it to decentralize?

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Definitions:

Negative Beta

A measure indicating that an investment's returns are expected to move in the opposite direction of the overall market returns.

Treasury Bills

Short-term government securities with maturity periods typically less than one year, considered low-risk investments.

Long Bonds

Bonds with maturities typically longer than 10 years, often used to lock in interest rates.

Variance

A statistical measure that captures the dispersion of a set of data points around their mean, indicating how spread out the data is.