Managers of profit centers are usually given a lot of discretion because
A)They always do an excellent job
B)The company can never judge their performance
C)The company has a clear performance evaluation metric
D)They rarely ever do a good job

Question

​Managers of profit centers are usually given a lot of discretion because
A)​They always do an excellent job
B)The company can never judge their performance
C)The company has a clear performance evaluation metric
D)​They rarely ever do a good job

Quizplus · Accepted Answer

Managers of profit centers are responsible for generating profits and are evaluated based on their ability to achieve profit targets. Therefore, they are given a lot of discretion in terms of their decision-making abilities. However, their performance can be evaluated based on their ability to achieve the profit targets set by the company. Hence, option C is the correct choice. Option A and D are incorrect choices as they make assumptions without any evidence. Option B is incorrect as the company can judge the performance of the profit centers based on their profits.

​Managers of Profit Centers Are Usually Given a Lot of Discretion

Managers of Profit Centers Are Usually Given a Lot of Discretion