1. Ch 09 Practice Test Question 01 All of the following are advantages of decent

Question

1. Ch 09 Practice Test Question 01 All of the following are advantages of decentralization except lower-level managers are able to make their own decisions without fully understanding the big picture delegation of day-to-day problem solving to lower-level managers allows top management to concentrate on bigger issues, such as overall strategy layers of decision making and approvals are eliminated so that an organization can respond more quickly to customers and to changes in the operating environment. O decentralization empowers lower-level managers to make decisions in such a way that improves their motivation and job satisfaction.

Explanation / Answer

Ans 1 – lower-level managers are able to make their own decisions without fully understanding the big picture.

Ans 7 1 -

Ans 7 2 - Reject the project.

Ans 7 3 - It will increase the company's overall ROI

Present New Total Sales $10,000,000 $2,000,000 $12,000,000 Net Operating Income $800,000 $160,000 $960,000 Operating assets $4,000,000 $1,000,000 $5,000,000 Margin 8.00% 8.00% 8.00% Turnover 20.00% 16.00% 19.20%

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