Tb chap 13 - 1 Which of the following is true regarding centralized firms a Subunits may behave in a manner not consistent with organizational

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1. Which of the following is true regarding centralized firms? a. Subunits may behave in a manner not consistent with organizational goals. b. Subunits behave as independent entities. c. Usually, a single person does all decision making, retaining full-authority and responsibility. d. Usually, the firm has no central authority. correct: c 2. A disadvantage of decentralization is that: a. it helps top management develop managerial talent. b. it may result in a lack of goal congruence by subunit managers. c. it allows the use of management by exception. d. the lack of duplication of accounting activities weakens internal control. correct: b 3. Disadvantages of decentralization include all of the following except that it: a. can create personnel difficulties. b. allows the use of management by exception. c. can result in suboptimization. d. can be very costly. correct: b 4. When a manager pursues goals within a segment instead of pursuing a goal in a company's best interest, it is called:
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This note was uploaded on 12/12/2008 for the course ACCT 310 taught by Professor Nacemagner during the Fall '08 term at Western Kentucky University.

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Tb chap 13 - 1 Which of the following is true regarding centralized firms a Subunits may behave in a manner not consistent with organizational

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