Question

Decentralization tends to be encouraged by which of the following business trends?

I. Product diversification
II. Telecommuting
III. Geographical expansion of operations

a. I only
b. II only
c. III only
d. I and III only
e. I, II, and III

Answer 1

Decentralization in business is encouraged by product diversification, telecommuting, and geographical expansion of operations, as these trends support autonomous operation within divisions, remote work environments, and local responsiveness respectively.

Step-by-step explanation:

Decentralization in businesses is often encouraged by several factors, which include product diversification, telecommuting, and geographical expansion of operations. These components contribute to a shift towards more autonomy within various segments of a company.

• Product diversification may lead to decentralization as it requires different departments or divisions to manage a variety of products, which may be tailored to meet specific markets and customer needs.
• Telecommuting enables employees to work remotely, which supports a more decentralized workforce that does not require a central physical office.
• Geographical expansion into new markets or regions may necessitate local decision-making authority, thus promoting decentralization to better respond to local demands and conditions.

Therefore, the correct answer to the question of which business trends encourage decentralization is e. I, II, and III.