The parent company would want to reward managers based on division revenues because
a. The managers usually have the least information about their divisions
b. It would incentivize the otherwise clueless managers about the daily activities of their divisions
c. The managers usually have the best information about how to run their divisions
d. None of the above
c
You might also like to view...
Refer to the table below. As the firm increases the number of employee-hours each day from 1 to 2, output increases by:OutputPer DayNumber ofEmployeeHours Per Day00331662994132716511
A. 66 units. B. 33 units. C. 99 units. D. 132 units.
When a transfer price is set lower
a. the buying division will want to sell less to the selling division b. the buying division will want to sell more to the selling division c. the selling division will want to sell less to the buying division d. the selling division will want to sell more to the buying division
Critics of government frequently assert that special interest groups favor transfer policies rather than economic growth policies
Indicate whether the statement is true or false
When total revenue and price are inversely related, demand is
A) unit-elastic. B) inelastic. C) elastic. D) not related.