When a small company grows to a large size, it may decide to decentralize because it is difficult for one owner (or manager) to manage an entire, large business.

Question

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Decentralization involves delegating power and decision-making to different departments or branches within a company. This is often done when a company becomes too large for one person or a small group of people to effectively manage all aspects of the business. Therefore, it is true that a small company may decide to decentralize as it grows larger.

When a Small Company Grows to a Large Size, It