If D Represents the Level of Decentralization of Corporate Decision-Making

Multiple Choice

If D represents the level of decentralization of corporate decision-making, then Benefits = B*D and Costs = A*D + C*D². The optimal level of decentralization occurs where the:

A) horizontal distance between benefits and costs is greatest.
B) vertical distance between benefits and costs is greatest.
C) sum of the squares of the distance between benefits and costs is minimized.
D) level of benefits is greatest.