Which of the following is true of organizations using decentralized control? a.T

Question

Which of the following is true of organizations using decentralized control?

a.They have mechanistic structural arrangements.

b.They often have a tall structure.

c.They want employees to be committed to their organization.

d.They focus their rewards on individual performance.

A(n) _____ is a budget expressed in financial terms which outlines what quantities of products or services an organization intends to create and what resources will be used to create them.

a.nonmonetary budget

b.operating budget

c.financial budget

d.economic budget

Which of the following is a disadvantage of budgeting?

a.It fails to facilitate coordination.

b.It may limit innovation and change.

c.It does not facilitate effective control.

d.It results in communication breakdowns.

Explanation / Answer

Answer : 1: Option C: They want employees to be committed to their organization.

Decentralized companies provide more authority to lower-level employees. They want employees to be commited to their organization.

Answer: 2: Option A: Nonmonetary budget

Nonmonetary budget is used for allocate resource, accounts for labour, space and equipments.

Answer: 3: Option A: It fails to facilitate coordination.

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