One potential pitfall of decentralizing a firm is:

• A. the inflexibility that decentralizing a firm causes.
• B. the few opportunities it leaves for employees to move up the company hierarchy.
• C. more layers of management will need to be created, thereby slowing flow of communication between authorities and local managers.
• D. a decrease in clear communication between the firm authority and local employees may lead to insecurity and a lack of focus within the firm.
• E. dissatisfaction among employees who want more responsibility and decision-making authority.