Knock out the centralized traits
Exercise and reference answers
- Questions
- Question
- Eliminate the traits of a centralized organization.
- Choices
- Item
- Decision-making is delegated downward
- Correct
- Yes
- Explanation
- That is how a small centralized business is described.
- Item
- The owner makes all the decisions
- Explanation
- That is listed as an advantage of centralized organizations.
- Item
- Clarity in decision-making
- Explanation
- That is listed as a disadvantage of centralized organizations.
- Item
- A higher risk of inflexibility
- Instructions
- Remove the traits of a centralized structure. One decentralized trait should survive.
Explanation
_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_