A firm is a good candidate for decentralization if _____.
A)segments buy from the same suppliers
B)segments sell to the same customers
C)there is frequent transferring of products between segments
D)an organization's segments are relatively independent of one another

Question

Quizplus · Accepted Answer

Decentralization works well when segments operate relatively independently from one another. This allows each segment to make decisions that are tailored to their specific needs and helps to reduce bureaucracy and increase efficiency. When there is frequent transferring of products between segments or if segments buy from the same suppliers or sell to the same customers, it may indicate that the segments are not operating independently enough to benefit from decentralization.

A Firm Is a Good Candidate for Decentralization If _____