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A tightly centralised firm gains tight financial control, but risks:
ASlow response to customers
BLoss of its trademarks
CRise in its share price
DGrowth of its export sales
Answer & Solution
Correct answer: A. Slow response to customers
1. Junior staff never develop decision skills.
2. Every call waits for the top.
3. The firm responds slowly to customers.
_Source: OpenStax Introduction to Business, Chapter 7, Designing Organizational Structures._
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