Question :
1. A decentralized organization one in which: A. each employee in the organization : 1295678
1. A decentralized organization is one in which:
A. each employee in the organization is given permission to make decisions about their company.
B. only top-level management is given decision-making authority.
C. managers at various levels throughout the organization are given decision-making authority.
D. each stockholder is given decision-making authority.
2. A local chain department store grants each of its store managers the authority to make buying decisions for their stores. Granting managers this kind of authority is found in which type of organization?
A. Segmented
B. Centralized
C. Desegmented
D. Decentralized
3. A local chain electronics store does not allow its store or district managers to make important decisions about their stores. The main role of store managers is to supervise employees and make sure day-to-day transactions run smoothly while district managers supervise store managers and report profitability data back to top-level management. Not allowing store or district managers decision-making authority is most likely to be found in which type of organization?
A. Segmented
B. Centralized
C. Desegmented
D. Decentralized
4. When a few individuals at the top of an organization retain decision-making authority, the organization is referred to as a(n):
A. investment center.
B. decentralized organization.
C. profit center.
D. centralized organization.
5. Which of the following statements regarding the structure of organizations is false?
A. When decision-making authority is spread among too many managers, managers may become so concerned with their own area of responsibility that they lose sight of the company’s overall focus.
B. In a decentralized organization, decision-making authority is confined to top-level management.
C. In a decentralized organization, there may be a lack of coordination and communication between segments.
D. Decentralization may make it difficult for managers to share unique and innovative ideas.
6. Which of the following is an advantage of decentralization?
A. It allows top-level management who normally work at corporate headquarters to get involved with the day-to-day decisions that need to be made at lower levels.
B. It allows managers to focus on their own area of responsibility rather than what is best for the company as a whole.
C. It allows decisions to be made in a more timely manner.
D. It requires very little as far as manager training costs.
7. Which of the following is not an advantage of decentralization?
A. It often creates higher job satisfaction for managers.
B. It allows top-level managers more time to devote to long-range strategic planning.
C. It allows lower-level managers to focus on their own particular goals and objectives without having to consider the overall company’s goals and objectives.
D. It permits lower-level managers to gain valuable on-the-job training in order to become better managers.
8. Which of the following is often not a disadvantage of decentralization?
A. Decreased job satisfaction for lower-level managers.
B. Lack of coordination and communication between segments.
C. Lack of company focus as lower-level managers may make decisions that benefit their own particular segment.
D. Higher training costs for lower-level managers.
9. Which of the following is a disadvantage of decentralization?
A. Less timely decisions are able to be made on a day-to-day basis.
B. Decreased job satisfaction for lower-level managers.
C. Lack of coordination and communication between segments.
D. Lower training costs for lower-level managers.
10. “Responsibility accounting” is the concept that says:
A. Managers should be held entirely responsible for all investment decisions that impact the particular segment in which they are in charge.
B. Managers should be held responsible for only those things under their control.
C. Managers should never be held entirely responsible for things that happen within the particular segment in which they are in charge.
D. Managers should be responsible for both revenues and costs of their particular segment.
