A biotechnology company is constantly faced with important decisions that are likely to have severe consequences on the future of the company. The top managers should
A) decentralize decision-making authority.
B) appoint lawyers to make business decisions.
C) train first-line managers to make these decisions.
D) exercise centralized decision-making authority.
E) consult investors when making important daily decisions.

Question

Quizplus · Accepted Answer

Given the high stakes and potential for severe consequences, it is important that top managers maintain control over important decisions in order to ensure consistency, alignment with company strategy and goals, and effective risk management. Decentralization may lead to inconsistency and lack of alignment, while training first-line managers may not provide the necessary expertise or experience for such important decisions. Appointing lawyers to make business decisions may not align with the company's goals and priorities, and consulting investors for daily decisions may not be practical or efficient. Therefore, exercising centralized decision-making authority is the best choice in this scenario.

A Biotechnology Company Is Constantly Faced with Important Decisions That