​Which of the following is FALSE?

A) ​Maximizing division profits can sometimes lead to reducing company-wide profits
B) Managers of profit centers are usually given a lot of discretion in their decision making
C) Profit centers usually require the highest degree of attention by corporate headquarters
D) ​A manager being rewarded on division revenues has the most incentive to make good decisions for his division

Division Profits

The earnings attributive to a specific division or branch of a larger company, often used to assess the performance of that segment.

Profit Centers

Profit centers are segments, branches, or divisions of a company that are treated as a separate business, responsible for generating their own revenues and profits.

Corporate Headquarters

The main office or center of operations for a business where significant managerial and administrative work is conducted.