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Which of the following is a disadvantage of decentralization? a.Decentralization of operations is not desirable for...

Which of the following is a disadvantage of decentralization? a.Decentralization of operations is not desirable for large companies. b.Decentralization of operations prevents managers from becoming experts in their areas of operations. c.Decentralization of operations discourages training for managers. d.Decentralization of operations results in duplication of assets and expenses across divisions.

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Answer #1

Disadvantages of Decentralization =

- d. Decentralization of operations results in duplication of assets and expenses across divisions.

Explanation-

Decentralization will lead to duplication of assets and expenses for different branches, departments and divisions of companies. It will increase the cost and expenses at different branches etc. This it is a disadvantage.

Decentralization is usually done in large companies, decentralization does not prevent managers from expert in their area and it does not discourage training for managers.

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