Firms that grant substantial decision-making authority to the managers of subunits are referred to as
A)residual organizations.
B)profit centers.
C)responsibility organizations.
D)decentralized organizations.

Question

Quizplus · Accepted Answer

Decentralized organizations grant significant decision-making authority to subunit managers. This allows for quicker response times, better decision making, and increased accountability at lower levels of the organization. Other options such as residual organizations, profit centers, and responsibility organizations do not necessarily imply a decentralized structure.

Firms That Grant Substantial Decision-Making Authority to the Managers of Subunits