All of the following are ADVANTAGES of decentralization EXCEPT:

A. Managers make better decisions when closer to the operation of the company.
B. Each decentralized operation purchases their own assets and pays for operating costs.
C. Expertise in all areas of the business is difficult, decentralization makes it better to delegate certain responsibilities.
D. Dencentralized managers can respond quickly to customer satisfaction and quality

Respuesta :

Answer:

B. Each decentralized operation purchases their own assets and pays for operating costs.

Explanation:

Advantages of decentralization includes; promotes quick decision making, encourages better control and supervision, ensures better control and supervision, reduces the burden of decision making on top management.

Based on the above, options A, C and D are advantages of decentalization.

The right option is therefore B. Each decentralized operation purchases their own assets and pays for operating costs.

This is not advantage but a disadvantage as owning assets and paying for expenses by the decentralized operations may result in increased cost for the entire organization.