Asked by Arshdeep Singh on Sep 24, 2024
Verified
Which of the following is FALSE?
A) Maximizing division profits can sometimes lead to reducing company-wide profits
B) Managers of profit centers are never given any discretion in their decision making
C) Profit centers usually largely run themselves
D) A manager being rewarded on division revenues has the most incentive to make good decisions for his division
Division Profits
The earnings attributed to a specific branch or department within a larger organization, reflecting its financial performance.
Profit Centers
Individual departments or units within a business that are responsible for generating their own profits.
Decision Making
The process of identifying and choosing alternatives based on the values and preferences of the decision maker.
- Compare the objectives of elevating profits within specific divisions to those of elevating profits throughout the whole company.
Verified Answer
DJ
Deandrea Jones6 days ago
Final Answer :
B
Explanation :
The statement "Managers of profit centers are never given any discretion in their decision making" is false. Profit center managers are typically given some level of discretion in decision making to achieve the overall profit goals of the company.
Learning Objectives
- Compare the objectives of elevating profits within specific divisions to those of elevating profits throughout the whole company.