When a company measures the performance of its national operating subsidiaries according to profitability,the company is using:

Question

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When a company uses profitability as a measure for its national operating subsidiaries, it is using control systems. Control systems are methods used by management to ensure that the company's activities align with its goals and mission. They assist managers in tracking their company's performance and ensuring that it meets the goals and objectives set out by the company. Profitability is one of the key performance indicators that control systems use to measure a company's success.

When a Company Measures the Performance of Its National Operating