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71.The degree to which an organization allows lower level managers to make decisions determines the degree of decentralization.

72.An advantage of decentralized authority is that those individuals closest to the customers and more familiar with local conditions make decisions.

73.Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.

74.As a result of rapidly changing markets and global differences in consumer tastes, more firms are considering centralized authority.

75.A weakened corporate image is one of the disadvantages of a decentralized business organization.

76.In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

77.Span of control refers to the number of different markets a business can serve efficiently.

78.The optimum number of subordinates a manager should supervise is referred to as the span of control.

79.In today's business environment, the trend is to decrease the span of control.

80.The more standardized the work, the wider the span of control.



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