The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the:

A well-capitalized financial institution has ________ to lose if it fails and thus is ________ likely to pursue risky activities

A) more; more B) more; less C) less; more D) less; less

All of the following can cause conflict between divisions EXCEPT

a. Coordination between divisions does not benefit all divisions equally b. managers of profit centers care too little about the effects of their decisions on other divisions c. corporate executives reward managers based on firm profitability instead of divisional profitability d. corporate executives cannot tell when one divisional manager's decisions are appropriate or not