Which of the following statements is TRUE? Lower-level managers make decisions without fully understanding the ompany's overall strategy. o Spreading innovative ideas is easy in a decentralized organization o By delegating day-to-day problem solving to lower-level managerst e firm is exposed to the greatest risks becau management does not have the wisdom of top management. o When a company's owners delegate decision-making authority to op managers, they employ corporate govema such systems do not provide enough incentives and feedback mer anisms to ensure that a company's board of a aligned with the owners' interests. Question 4 Drifloon Corporation is considering the use of residual income as a measure of the performance of its divisions. Wh this method should the company consider before deciding to institute it? The minimum required rate of return may eliminate desirable investments. o Investments may be adopted that will decrease the overall return on investment o Residual income does not measure how effectively the division manager controls costs. This method does not take into account differences in the size of the divisions. D Question 5