A Disadvantage Associated with Decentralizing the Decision-Making Process in an Organization

Multiple Choice

A disadvantage associated with decentralizing the decision-making process in an organization is that:

A) the CEO is likely to make suboptimal decisions.
B) the cost of transferring information between the CEO and other decision makers can be high.
C) it makes the three legs of the architectural stool of an organization inconsistent with each other.
D) it prevents firms from benchmarking other firms to determine value-enhancing policies.