Decentralized firms give more autonomy to business units, allowing them to make their own decisions. This often results in smaller corporate staffs and a more efficient decision-making process. However, whether decentralized or centralized firms are more successful depends on various factors and cannot be generalized.

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Decentralized Firms

Question 22

Multiple Choice

Decentralized firms

A) tend to employ small corporate staffs and allow business units to make their own decisions.
B) are more successful than centralized firms.
C) are less successful than centralized firms.
D) tend to make major decisions for the business units at corporate headquarters.

Correct Answer: