Asked by Corey Cuvellier on Sep 24, 2024
Verified
Which of the following is TRUE?
A) Maximizing division profits will always lead to maximizing company profit
B) Maximizing division profits will always lead to minimizing company profit
C) Maximizing division profits can sometimes lead to reducing company-wide profit
D) Maximizing division profits has no effect on company-wide profits
Division Profits
The earnings generated by a specific division within a larger company, highlighting its financial performance.
Company-wide Profit
The total earnings or net income generated by all operations and departments of a business.
- Comprehend the connection between the profits earned from divisions and the overall profits of the company.
Verified Answer
BM
Basil Mohamed1 day ago
Final Answer :
C
Explanation :
Maximizing division profits can sometimes lead to reduced company-wide profit because the focus on division profits may lead to neglecting other areas or sacrificing investments and resources that benefit the company as a whole.
Learning Objectives
- Comprehend the connection between the profits earned from divisions and the overall profits of the company.