Which of the following results from decentralization?
A) It results in better local decision-making by central management as they are in contact with immediate operating conditions.
B) It results in better implementation of decisions as central management is charged with both making and implementing decisions.
C) It results in the usage of a firm's resources to maximize firm value by the lower-level managers.
D) It results in enhanced competition as segments are protected from dealing with market forces.
E) All of these.

Question

Quizplus · Accepted Answer

Decentralization allows lower-level managers to have more autonomy and decision-making power, which can lead to the optimization of the firm's resources to increase firm value. Option A is incorrect because decentralization means decision-making is given to lower-level managers, not central management. Option B is incorrect because decentralization means the responsibility of implementing decisions is also delegated to lower-level managers. Option D is incorrect because decentralization increases competition as lower-level managers are encouraged to find more efficient ways to operate and generate profits.

Which of the Following Results from Decentralization