Which organizational structure balance is suggested for ABC, combining quick decisions by specialists with central control for finance, strategy, and risk?

• A. Some decentralization with central control for finance, strategy, and risk
• B. Centralized overall structure
• C. Fully decentralized with no central control
• D. Outsourcing management functions

Answer: (A)

This item tests balancing decision-making by giving specialists room to act quickly while keeping central oversight over finance, strategy, and risk. Letting decentralization occur at the points where experts know the details enables fast, informed decisions and responsive operations. At the same time, central control over finance, strategy, and risk provides consistent financial reporting, alignment with the overall plan, and effective risk management across the whole organization. Outsourcing management functions would externalize activities rather than balance internal authority; a fully centralized structure would slow decisions and reduce responsiveness; a fully decentralized approach could lead to inconsistent practices and weaker oversight. The mix described—some decentralization with central control for these key areas—best achieves both speed and coordination.