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1.      Segment autonomy means that the activities of segment managers are directed by top managers.
          
2.     Decentralization is the delegation of freedom to make decisions.


3.     The lower in the organization that the freedom to make decisions exists, the greater the centralization.
     
4.     The increasing sophistication of telecommunications aids decentralization.
     
5.     There are really no advantages to a centralized company.
     
6.     Some level of decentralization creates benefits for most organizations.
     
7.     Higher-level managers have the best information concerning local conditions.
     
8.     Managers in decentralized organizations tend to duplicate services (e.g., accounting).
     
9.     The costs of accumulating and processing information frequently decline under centralization.
     
10.     Managers in decentralized units may waste time negotiating with other units about goods or services one unit provides to the other.
     
11.     Decentralization is more popular in nonprofit organizations than it is in profit-seeking organizations.
     
12.     Decentralization is most successful when an organization’s segments are relatively independent of one another.
     
13.     If segments do much buying from the same outside suppliers, they are candidates for heavier decentralization.
     


14.      Profit centers can exist only in a decentralized organization.

15.     In designing accounting control systems, top managers must consider the system's impact on behavior desired by the organization.


16.     All control systems are imperfect.
     

                    
17.      Incentives do not enhance managerial effort toward goal congruence.

18.     Managers tend to focus their efforts in areas where performance is measured and where their performance affects rewards.
                    
19.     According to agency theory, employment contracts will trade off the following three factors: risk, incentive, and the cost of measuring performance.


20.     Performance-based rewards can be informal

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