Which of the following is the correct distinction between delegation and decentralization? (A) Delegation is a result of the policy decision of top management, whereas decentralization is a process. (B) Delegation is a process, whereas decentralization results from the policy decisions of top management. (C) Delegation is an optional decision and decentralization is compulsory. (D) In delegation, there is more control by the superior, whereas in decentralization, there is less control over executives. Choose the correct answer from the options given below:

Option 1 -> (A), (B) and (D) only - Statement (A) is incorrect as it reverses the definitions; delegation is a process, not a result of policy. Option 2 -> (B) and (D) only - Statement (B) correctly identifies delegation as a process and decentralization as a policy outcome; (D) correctly distinguishes control levels. Option 3 -> (A) and (C) only - Statement (A) incorrectly reverses definitions, and (C) wrongly states decentralization is compulsory when it's a strategic choice. Option 4 -> (C) and (D) only - Statement (C) is incorrect as neither delegation nor decentralization is compulsory in absolute terms. Hence, Option 2 -> Statement (B) is correct because delegation is indeed a process of transferring authority from superior to subordinate, while decentralization results from top management's policy decision to systematically distribute authority. Statement (D) is correct because delegation maintains closer superior control with direct accountability, whereas decentralization disperses control and grants greater autonomy to lower-level executives -> correct