Which of the following is FALSE?
A)Maximizing division profits always leads to maximizing company-wide profits
B)Managers of profit centers are usually given a lot of 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

Question

​Which of the following is FALSE?
A)​Maximizing division profits always leads to maximizing company-wide profits
B)Managers of profit centers are usually given a lot of 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

Quizplus · Accepted Answer

Maximizing division profits may not always lead to maximizing company-wide profits as it could potentially harm other divisions or the organization as a whole. Sometimes, decisions need to be made that benefit the company overall, even if it means sacrificing short-term profits for a single division.

​Which of the Following Is FALSE

Which of the Following Is FALSE