Which of the following is NOT a reason for decentralization?
A) focusing of central management
B) exposing segments to market forces
C) ease of gathering and using local information
D) allows all decisions to be made at the top
Why is decentralization frequently chosen by companies?
A) It allows higher management to make all decisions.
B) It allows for training and motivation of local managers.
C) It protects segments of the company from competitive pressures.
D) It allows higher management to gather local information to make better decisions.
Along which of the following lines are divisions in a decentralized company NOT created?
B) alphabetical by product line
C) types of goods or services produced
D) type of responsibility given to divisional manager
Which responsibility centre designation would be used for a production manager?
A) a cost centre
B) a profit centre
C) a revenue centre
D) an investment centre