alleryStart learning →A named disadvantage of centralized organizations is a higher risk of:
AInfestation
BInformation
CInflexibility
DInflammation
Answer & Solution
Correct answer: C. Inflexibility
1. Centralization buys clarity and control at a price.
2. Employees lower down get limited opportunity to feed back.
3. The primary disadvantages include a higher risk of inflexibility.
4. So the risk named is inflexibility.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 9 'Responsibility Accounting and Decentralization', sections 9.1-9.4_
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