What term describes the degree to which decision-making authority is concentrated at higher managerial levels within an organization?
ADecentralization
BDelegation
CCentralization
DFormalization
Explanation
• Centralization refers to keeping decision-making authority predominantly at executive top-level management.
• Decentralization distributes decision-making authority down through lower operational levels of the firm.
• Highly centralized organizations respond slower to local market changes but maintain tighter top-down control.
Exam Relevance
- Topic: Organizing
- Subtopic: Centralization & Decentralization

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