Which of the following is FALSE?
A)Maximizing division profits can sometimes lead to reducing company-wide profits
B)Managers of profit centers are 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 no incentive to make good decisions for his division

Question

​Which of the following is FALSE?
A)​Maximizing division profits can sometimes lead to reducing company-wide profits
B)Managers of profit centers are 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 no incentive to make good decisions for his division

Quizplus · Accepted Answer

A manager being rewarded on division revenues may prioritize increasing sales revenue over profits, and may make short-term decisions that are not in the best interest of the division or the company as a whole, such as cutting costs that lead to lower quality products or investments in long-term growth. Therefore, this statement is true, and not false.

​Which of the Following Is FALSE

Which of the Following Is FALSE