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An entrepreneur gives employees decision-making authority but does not clarify acceptable risk limits. What is the most likely outcome?

Answer and explanation

Correct answer: Inconsistent decisions and unclear accountability

Delegation works when authority is accompanied by clear goals, boundaries and accountability. Without risk limits, employees may interpret acceptable action differently and take decisions that conflict with one another. This creates inconsistency and makes responsibility difficult to trace. Delegation does not remove risk, guarantee demand or make all decisions identical.

Related tags

DelegationRisk-LimitsAccountabilityQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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