All of the following can cause conflict between divisions EXCEPT
a. Divisional managers are rewarded on the profitability of the firm, instead of profitability of the division
b. managers of profit centers care too little about the effects of their decisions on other divisions
c. managers are rewarded only for how much profit their division generates
d. corporate executives cannot tell when one divisional manager's decisions are appropriate or not
a
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Which of the following fiscal policy changes would be the most expansionary?
A. A $20 billion tax cut and $20 billion increase in government purchases B. A $40 billion tax cut C. A $10 billion tax cut and $30 billion increase in government purchases D. A $40 billion increase in government purchases
Activists believe that ________
A) frictions to the self-correcting mechanism of markets prevent prices and wages from being very flexible B) it takes a very long time to reach the long run C) Keynes was right with his statement "in the long-run, we are all dead" D) all of the above E) none of the above
Those goods having a calculated income elasticity that is negative are called:
a. producers' goods b. durable goods c. inferior goods d. nondurable goods e. none of the above
Give an example not in the text of how price ceilings can lead to a shortage.
What will be an ideal response?