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Management · Q264

Strategic Management

Graduate and Post Graduate · Management · question 264

Q264

A small company, with power concentrated in the hands of one central figure, tends to be what?

A.
Centralized and formal
B.
Centralized and informal
Answer
C.
Decentralized and formal
D.
Decentralized and informal

Answer: Option B

Solution

Answer: Option B
Solution:
A small company, with power concentrated in the hands of one central figure, tends to be centralized and informal. Centralized authority refers to an organizational management structure where most of the major decision-making power and authority rests in the hands of a concentrated group of leaders.