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Exam IIA-CIA-Part3 topic 2 question 42 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 42
Topic #: 2
[All IIA-CIA-Part3 Questions]

A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

  • A. Lack of coordination among different business units.
  • B. Operational decisions are inconsistent with organizational goals.
  • C. Suboptimal decision-making.
  • D. Duplication of business activities.
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Suggested Answer: C 🗳️
by Tico at Aug. 19, 2021, 11:32 a.m.

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Crazyhydra
10 months, 3 weeks ago
C is correct, decision made by small management team may not fully capitalize on the insights and local knowledge of those working closely with specific operations, regions, or products.
upvoted 2 times
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Tico
2 years, 12 months ago
I think A is correct. Why a vertically centralized organization has a risk to make suboptimal decisions?
upvoted 1 times
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