Which of the following is a factor that influences centralization of decision making in subsidiary operations?
A) Heterogeneous product lines
B) High level of product diversification
C) Large geographic distance between home office and subsidiary
D) High degree of interdependence between units

Question

Quizplus · Accepted Answer

Companies that have a high degree of interdependence between units may choose to centralize authority for critical decisions because there is a greater need for coordination. This is especially relevant when organizations provide a large investment because they prefer to keep track of progress.

Which of the Following Is a Factor That Influences Centralization