1. The organizational structure in which decision-making authority for the entire organization rests in the hands of one person or a small group of people in a single location is called:
a. Responsibility centered.
b. Centralization.
c. Decentralization.
d. Segmentation .
2. The organizational structure in which decision-making authority is dispersed throughout the organization is called
A. Centralized.
B. Decentralized.
C. Divisional stability.
D. Segmented decision making.
Q1. Answer is b. Centralization.
Explanation: When the decision-making powers vest with the group fo people mainly Top management of the company for the whole of the organization, such type of business structure is known as the Centralized environment.
Q2. Answer is B. Decentralized.
Explanation: When the decision-making authority has been delegated to the lower level of management i.e. till line manager for the area of their responsibility, then such environment is Known as a Decentralized business.
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