1) Which of the following is not an advantage of decentralization?

A) Allows for development of managerial expertise

B) Allows top managers to focus on strategic issues

C) Managers can react quickly to local information

D) Potential duplication of resources

2) Which of the following is considered a disadvantage of decentralization?

A) Upper-level managers with more knowledge about lower-level managers' areas of responsibility are further away from the day-to-day decisions.

B) Lower-level managers may have an opportunity to make decisions in their own best interest without considering the overall health of the company.

C) Decentralization does not foster managerial expertise since upper level managers manage less.

D) Decentralization does not empower upper-level managers to focus on strategy because they are too busy managing lower-level managers.

3) Which of the following statement is correct about the functions that fall within various responsibility centers?

A) A revenue center manager is responsible for the same number of functions as a profit center manager is.

B) A revenue center manager is responsible for more functions than a profit center manager is.

C) A revenue center manager is responsible for fewer functions than a profit center manager is.

D) A revenue center manager is not responsible for any functions; only the profit center manager is responsible for functions.