Question : Centralisation refers to ____________.
Option 1: Retention of decision making authority
Option 2: Dispersal of decision making authority
Option 3: Creating divisions as profit centres
Option 4: Opening new centres or branches
Correct Answer: Retention of decision making authority
Solution : Centralisation refers to concentration of power or authority in few hands. An organisation is centralised when the decision-making authority is in the hand of top level management only. Hence, option 1 is the correct answer.
Question : The dispersal of decision making authority among more than one person is known as?
Option 1: Centralisation
Option 2: Order
Option 3: Decentralization
Option 4: Equity
Question : ___________ is the process of grouping similar activities together and creating departments.
Option 1: Division of work
Option 2: Departmentalisation
Option 3: Delegation
Option 4: Centralisation
Question : ___________ involves giving authority and responsiblity to subordinates.
Option 2: Decentralisation
Question : A major risk of groupthink is:
Option 1: Enhanced creativity
Option 2: Improved decision-making
Option 3: Reduced conflict
Option 4: Faulty decision-making
Question : A democratic leadership style involves:
Option 1: Autocratic decision-making
Option 2: Micromanagement of tasks
Option 3: Collaborative decision-making
Option 4: Passive communication style
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