Which of the following is TRUE?
a. Maximizing division profits can sometimes lead to reducing company-wide profits
b. Managers of profit centers are not given any discretion in their decision making
c. Profit centers usually require the highest degree of attention of corporate executives
d. A manager being rewarded on division revenues has no incentive to make good decisions for his division
a
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If Project A has a cost of $5, and a provides a benefit of $10, and Project B has a cost of $2, and provides benefit of $4, then switching from Project A to Project B:
A) increases the net benefit by $3. B) decreases the net benefit by $3. C) increases the net benefit by $6. D) decreases the net benefit by $6.
In Figure 10-5 above, suppose that the economy's steady-state point is C. At points to the left of this, steady-state investment ________ national saving, moving the economy ________ point C
A) exceeds, further away from B) exceeds, closer to C) falls short of, further away from D) falls short of, closer to