Decentralized Organizations Have the Ability to Create Divisions of Itself

Multiple Choice

Decentralized organizations have the ability to create divisions of itself that are called responsibility centers. One of the features and advantages of this is that managers have decision-making independence and are empowered to run their own departments. Which of the following best represents the presence of authority, one of the three characteristics of a responsibility center?

A) A company moves from a model where a department is able to set working hours for its employees to a company-wide policy for all employees.
B) Carleigh, the divisional manager delegates analysis tasks to his employees and has the decision-making authority to purchase assets for his division.
C) The company CEO insists that they must approve any new hires selected by the accounting department.
D) The sales manager decides not to delegate paperwork to subordinates so that they can monitor all activity.