Key differences between centralization and decentralization


Assignment:

For this assignment, you will review and answer the following questions:

1. What do you think are the key differences between centralization and decentralization? Why are these concepts important in decision rights assignment?

2. Decision-making rights assignment may be subject to scrutiny, especially when agency conflicts arise. Shareholders, whose primary interest is wealth maximization, may question executive rights assignments when firm performance is suboptimal. What factors do you think must be considered by the assignee in assigning rights to subordinates in an attempt to align shareholders' interests? What kinds of challenges do you think the former might experience in the process?

Your response must be a minimum of two pages in length, and you must use at least two academic sources in addition to your textbook. All sources used, including the textbook, must be cited and follow APA guidelines, and your paper should be formatted in APA style to include a title and reference.

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Microeconomics: Key differences between centralization and decentralization
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