Asked by Bhumika Girish on Sep 24, 2024

​Which of the following is TRUE?

A) ​Maximizing division profits can sometimes lead to reducing company-wide profits
B) Managers of profit centers are not given any discretion in their decision making
C) Profit centers usually require the highest degree of attention of corporate executives
D) ​A manager being rewarded on division revenues has no incentive to make good decisions for his division

Division Profits

The earnings generated from a specific department or segment within a larger organization.

Profit Centers

Segments or divisions within a company that are directly responsible for generating a significant portion of the company's profits.

  • Contrast the aim of increasing divisional profits with the objective of boosting profits for the entire corporation.