A centralized organization is one in which authority is concentrated in different places.

Prepare for the ACCA F1 Certification Exam with detailed quizzes featuring multiple choice questions and explanations. Enhance your understanding and ensure success in your exam!

A centralized organization is characterized by the concentration of authority at a single point or a few key individuals within the organizational structure. This means that decision-making power is held at the top levels of management, and lower levels of the organization have limited autonomy to make independent decisions.

In a centralized structure, directives typically flow from the top down, allowing for consistency in decision-making and a unified direction for the organization. This can enhance control and ensure that the organization's strategy is implemented consistently throughout.

The statement that authority is concentrated in different places contradicts the definition of centralization, as it suggests a distribution of power rather than a concentration. Therefore, the understanding of centralization leads to the conclusion that the statement is false.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy