Which best describes the tension between central control and subsidiary initiative in a large firm?
A) The central management must realize social capital in order to take advantages of the complex subsidiary relationships.
B) The central management s main motivation is value for the firm, so it will only give subsidiaries greater responsibility if they create value.
C) The central management may want to give subsidiaries control and encourage entrepreneurship and innovation, but it is difficult to distinguish between good faith subsidiary initiative and opportunism.
D) All of the answers

Question

Quizplus · Accepted Answer

Option C explains that while central management may want to encourage subsidiary initiative, it can be challenging to differentiate between sincere entrepreneurial efforts and opportunistic behavior. Options A and B are incorrect because they do not address the tension between central control and subsidiary initiative. Option D is incorrect because it is too broad and encompasses all the options without providing a proper explanation. The tension between central control and subsidiary initiative is that the central management may want to give subsidiaries control and encourage entrepreneurship and innovation, but it is difficult to distinguish between good faith subsidiary initiative and opportunism. Choice A is not entirely related to the tension between central control and subsidiary initiative. Choice B is only focused on the central management's motivation for giving greater responsibility to subsidiaries. Choice D is too broad and includes all options, which is not a specific answer to the question.

Which Best Describes the Tension Between Central Control and Subsidiary