A disadvantage associated with decentralizing the decision-making process in an organization is that:

A. the CEO is likely to make suboptimal decisions.

B. the cost of transferring information between the CEO and other decision makers can be high.

C. it makes the three legs of the architectural stool of an organization inconsistent with each other.

D. it prevents firms from benchmarking other firms to determine value-enhancing policies.

Kevin Freeman is the head of a team developing plastic knee replacements. His research team has discovered an improved materials -handling procedure that reduces contamination of the product during assembly. The issue for the company after the discovery is:

A. how this specific knowledge can be transferred to the company's whole production process.

B. whether or not this specific knowledge can be implemented in the knee team's process. C. whether to transfer this new knowledge for general corporate use.

D. to figure out how this discovery can be utilized to reduce influence costs.

The principle of Economic Darwinism implies that:

A. publicly traded corporations have evolved unsuccessfully through the competitive process and are not here to stay and flourish.

B. publicly traded corporations have evolved successfully through the competitive process but they are not here to stay and flourish.

C. publicly traded corporations have evolved unsuccessfully through the competitive process but will be here to stay and flourish.

D. publicly traded corporations have evolved successfully through the competitive process and are here to stay and flourish.