1. Which of the following is a reason for decentralization?

1. It makes it easy to gather and use local information more effectively.
2. It helps top management to make proper decisions as top management generates all information.
3. It protects segments of a company from competitive pressures.
4. It segregates functions, where top management makes all decisions and local unit generates all information.

2. A profit center is a responsibility center in which a manager is responsible for:

1. only revenues.
2. only investments.
3. investments and costs.
4. revenues and costs.

3. Which of the following represents the greatest degree of decentralization?

1. Profit centers
2. Revenue centers
3. Cost centers
4. Investment centers