Decentralized firms can delegate authority and yet retain control and monitor managers' performances by structuring the organization into so-called "responsibility centers." Which one of the following business segments/responsibility centers is most like an independent business?

Question

Quizplus · Accepted Answer

Investment centers are treated most like independent businesses because they are responsible not only for generating profits but also for managing their investments and assets. This gives managers control over decisions that affect both the revenue and the cost side of their operations, closely mimicking the responsibilities of an independent business owner.

Decentralized Firms Can Delegate Authority and Yet Retain Control and Monitor