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What Is True of Companies That Use Relative Performance Evaluation

Question 58

Multiple Choice

What is true of companies that use relative performance evaluation?


A) Divisional performance is compared with that of other divisions in the same industry.
B) Managers are not shielded from the risk of managing a division in a poorly performing industry.
C) Incentives are not provided for managers to move out of low-performing to high-performing industries.
D) All of the answers are correct.

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