# kaal:claim:3782191-010

**Claim.** A traditional firm is logically centralized because dividing it would break it apart into parts that could not operate independently, a property traceable to the hierarchical order that creates the firm's efficiencies and structure.

**Type.** mechanism  **Support.** argued

**Holds when.**

- traditional corporations

**Source quote.**

> The firm is logically centralized as a division of the firm would typically break it apart and it would not be able to operate independently as two separate parts. This is traceable to the firm's hierarchical order that creates efficiencies and structure.

**From.** Craig Calcaterra, Wulf A. Kaal, *Preface to* (2021), Technical Delineation, page 5

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Preface to (2021). SSRN: https://ssrn.com/abstract=3782191

**Verify.** sha256 of source PDF `b0bf0529c3cf69839879bc4da476714efee2717a4beb768bd5c859b810e6174e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Preface%20to.pdf

**Topics.** decentralization, institutional-design

**Keywords.** firm, logical-decentralization, hierarchy, corporate-structure

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