x 1) Advantages of decentralization include all of the following except 0/6.66 Points better motivation and higher status of lower- level managers time taken to negotiate between units reduced service duplication lower manager motivation 2) Profit centers can 6.66/6.66 Points be used in both centralized and decentralized operations never be used by organizations regardless of their degree of centralization in decision making only be used if an organization is decentralized in structure only be used if an organization is centralized in structure x 3) According to agency theory, employment contracts will not trade off 0/6.66 Points cost of measuring performance timeliness risk incentive