Question

The Kingtel Corporation is expanding operations into countries outside the United States. To improve local managers' responsiveness to local conditions, Kingtel's senior management has decided to delegate decision-making authority further down the chain of command. Acme is

decentralizing (T/F)

Answer 1

True. This is an example of decentralization.

Step-by-step explanation:

Starting operations abroad is a major decision for a corporation. It will be very difficult if the CEO in the home country has to take all the decisions; this can diminish effiiency, effectivity and a CEO may not be knowledgeable about all local conditions in new countries. So, he has to confer decision-making powers in some key areas to local managers.