Decentralizing decision rights marries authority with local knowledge. This would seem to be a good thing, but a problem that may arise is that
A. local managers may have too strong a corporate identification.
B. lack of local incentives may mean that local managers do not work to maximize firm value.
C. local management may conserve central management's time and effort.
D. local knowledge may allow local managers to tailor prices and services to suit local needs.
Answer: B
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Use the following information to answer the next question.Maya purchases only three products; orange juice, prepared meals, and on-demand episodes of her favorite shows. Each week she purchases 2 bottles of orange juice, 14 prepared meals, and 8 on-demand episodes. The prices of bottles of orange juice, prepared meals, and on-demand episodes for four different years are shown in the table below.YearPrice of Orange JuicePrice of Prepared MealsPrice of On-Demand Episodes1$2$6$102$6$5$123$4$7$134$4$8$11Based on this information, which of the following statements is true?
A. Maya spent $10 less in Year 1 than in Year 2. B. Maya's buying power increased between Year 1 and Year 4. C. There was inflation from Year 3 to Year 4. D. Maya's purchases cost $30 more in Year 3 than in Year 2.
Why do banking panics normally lead to recessions?
What will be an ideal response?
Calculating the value of an economy is more complex than just adding up the value of every single thing that is produced because that would lead to:
A. overcounting, as there is a mark-up in everything that is sold. B. undercounting, as only observable markets can be recorded. C. overcounting, as the value of intermediate products would be counted twice. D. undercounting, as most goods are not sold in retail markets.
Before the year 2000, the most prolonged departure from the long-term growth path for the United States occurred during
A. The 1980s. B. World War II. C. The years following World War II. D. The Great Depression.