A firm is a good candidate for decentralization if ________.
A)segments buy from the same suppliers
B)segments sell to the same customers
C)there is frequent transferring of products between segments
D)an organization's segments are relatively independent of each other

Question

Quizplus · Accepted Answer

Decentralization is the process of transferring decision-making authority from a central location to other organizational levels. This is most effective when the organization's segments are relatively independent of each other, allowing for more streamlined and efficient decision-making at lower levels. Therefore, option D is the best choice. Options A, B, and C may be relevant factors for other decisions, but they do not necessarily indicate that a firm is a good candidate for decentralization.

A Firm Is a Good Candidate for Decentralization If ________