Briefly describe market controls at the corporate level.
What will be an ideal response?
Large diversified companies use market controls to regulate independent business units. Large conglomerates act as holding companies, treating business units as profit centers that compete with one another. Top executives may place few bureaucratic controls on business unit managers, but use profit and loss data to evaluate their performance. Decision making and power are decentralized to the business units, and market controls ensure that business unit performance is in line with corporate objectives. Using market control mechanisms is criticized for not adequately reflecting environmental sustainability or organizations' total value. And employees often suffer as diversified companies are repeatedly bought and sold based on market controls.
You might also like to view...
Which of the following is an advantage of collaborative writing?
A) Each member has to accomplish fewer tasks. B) Each member has different expertise to contribute. C) Each member can focus on accuracy and detail so no errors are missed. D) Each member can rely on another member if their schedule gets busy. E) Each member can change another members work to ensure unified ideas.
A company wants to decrease its $200.00 petty cash fund to $75.00. The entry to reduce the fund is:
A. Debit Cash Over and Short for $12.50; credit Petty Cash $12.50. B. Debit Petty Cash $100.00; credit Cash $100.00. C. Debit Miscellaneous Expenses $25.00; credit Cash $25.00. D. Debit to Cash $125.00; credit Petty Cash $125.00. E. Debit Petty Cash for $75.00; debit Cash Over and Short $175.00; credit Cash $200.00.
Which of the following statements regarding segmentation bases is most accurate?
A. Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic. B. Behavioral segmentation is based primarily on personality. C. The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective. D. Psychographic segmentation is based primarily on product features. E. The identification of psychographic variables is more objective than the identification of demographic variables, which is more subjective.
In cases where one party to an illegal agreement is less at fault than the other, he will be allowed to recover payments made or property transferred
Indicate whether the statement is true or false