Question

Ross and Tony, father and son, opened a large boutique named Tradus in Chicago. The father and son, being the owners of the business concern, decide about the important matters and all the rest of the functions like the product, finance, marketing, and personnel are carried out by the department heads who have to act as per the instruction and orders of both of them. Which of the following is true about Tradus?

a. It has a very tall organizational structure.
b. The degree of formalization is very low in the organization.
c. It has a centralized system of decision making.
d. It has a narrow span of control.
e. It has a matrix organizational structure.

Answer 1

c. It has a centralized system of decision making.

Step-by-step explanation:

Tradus operates a centralized system management as decisions are taken at the apex of the organisational hierarchy. He the CEO or chairman of the board takes up decision making roles from units and departments.