The CA Hub

PRC-3 · Chapter 3 · Question 41 of 70

At Delta Manufacturing, branch managers are not allowed to spend more than Rs. 5,000 without written permission from the CEO at headquarters. This heavily restrictive policy indicates that the firm is highly:

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: C) Centralized

Explanation

Centralization occurs when decision-making power is heavily retained at the top of the management hierarchy, giving lower levels little to no autonomy.

All 70 questions in Chapter 3Organization of Business MCQs with answers

More Organization of Business MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →