In large businesses, decentralization is often advantageous because:
A) it allows top management to make all decisions, thus ensuring that overall operational goals are met.
B) it prevents decisions from one unit to negatively affect the profitability of the entire company.
C) it allows departmental managers to focus on acquiring expertise in their areas of responsibility.
D) it prevents duplication of assets and expense.

Question

Quizplus · Accepted Answer

Decentralization allows for departmental managers to have more autonomy and focus on their specific areas of responsibility, leading to more expertise and potentially better decision making in those areas. This can ultimately benefit the overall business as each department is able to operate more efficiently and effectively. Option A is incorrect because decentralized businesses often have decision-making power at lower levels, not just top management. Option B is incorrect because decentralization can still lead to negative impacts on overall profitability if departments are not effectively coordinated or goals are not aligned. Option D is incorrect because decentralization may still require some duplication of assets or expenses in order to effectively operate each department.

In Large Businesses, Decentralization Is Often Advantageous Because