The management function of a sufficiently large firm should be separated from finance and residual claimancy because of:
A)differences in skill requirements and opportunity costs.
B)differences in attitudes towards risk.
C)differences in investment choices and responsibilities.
D)differences in beliefs about a new strategy's probability of success.

Question

Quizplus · Accepted Answer

The management function and finance and residual claimancy require different skill sets and have different opportunity costs. It is important to separate the two functions to ensure each is carried out effectively and efficiently.

The Management Function of a Sufficiently Large Firm Should Be