Which of the following is FALSE?
A)Maximizing division profits can sometimes lead to reducing company-wide profits
B)Managers of profit centers are usually given a lot of discretion in their decision making
C)Profit centers usually require the highest degree of attention by corporate headquarters
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 can sometimes lead to reducing company-wide profits
B)Managers of profit centers are usually given a lot of discretion in their decision making
C)Profit centers usually require the highest degree of attention by corporate headquarters
D)​A manager being rewarded on division revenues has the most incentive to make good decisions for his division

Quizplus · Accepted Answer

Profit centers are usually designed to function independently and generate profits on their own, therefore they require less attention from corporate headquarters compared to cost centers or investment centers.

​Which of the Following Is FALSE

Which of the Following Is FALSE