Which is better a centralized or decentralized approach

Reference no: EM13260381

Both Berkley and Oakley are large public corporations with subsidiaries throughout the world. Berkley uses a centralized approach and makes most of the decisions for its subsidiaries. Oakley uses a decentralized approach and its subsidiaries make many of their own decisions.

a. Would the agency problem be more pronounced for Berkley or for Oakley? Explain.

b. Would agency costs likely be higher for Berkley or Oakley? Why?

c. Discuss a major advantage and a major disadvantage to a centralized approach such as Berkley uses.

d. Discuss a major advantage and a major disadvantage to a centralized approach such as Oakley uses.

e. Which is better, a centralized or decentralized approach? Explain.

Reference no: EM13260381

Questions Cloud

Explain the calculation the change in enthalpy of hcl : Calculate the change in enthalpy of HCl + NaOH--> NaCl + H2O for this reaction using Hess's Law. Units should be kJ/mol.

Calculate the coupon interest rate : Identify 2 or 3 advantages to the investor of buying a bond with warrants instead of straight bonds.

Find the radius of the star rigel : Find the radius R of the star Rigel, the bright blue star in the constellation Orion, which radiates energy at a rate of 2.7×1032 W

A normally distributed quality characteristcs : A normally distributed quality characteristcs has specification limits at LSL=50 and USL=60. a random sample of size 35 results in Xbar = 55.5 and s= 0.9

Which is better a centralized or decentralized approach : Both Berkley and Oakley are large public corporations with subsidiaries throughout the world. Berkley uses a centralized approach and makes most of the decisions for its subsidiaries. Oakley uses a decentralized approach and its subsidiaries make ..

Explain henderson-hasselbalch equation to calculate the ph : Use the Henderson-Hasselbalch equation to calculate the PH of each solution- a solution that contains 0.760% C5H5N by mass and 0.960% C5H5NHCl by mass

Create a table for the npv profile for this project : Create a table for the NPV profile for this project for discount rates ranging from 0% to 30%, in intervals of 5%. For which discount rates is the project attractive?

What is the current share price : The company will pay a $12 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 13.5 percent, what is the current share price?

Explain the calculation the ph of each of the solutions : Solve an equilibrium problem (using an ICE table) to calculate the pH of each of the following solutions. 0.17 M CH3NH2Cl

User Account

All Pages