Which of the following is TRUE?
A)Maximizing division profits always leads to maximizing company-wide profits
B)Managers of profit centers are given a lot discretion in their decision making
C)Profit centers usually require the highest degree of attention of corporate executives
D)A manager being rewarded on division revenues has no incentive to make good decisions for his division

Question

​Which of the following is TRUE?
A)​Maximizing division profits always leads to maximizing company-wide profits
B)Managers of profit centers are given a lot discretion in their decision making
C)Profit centers usually require the highest degree of attention of corporate executives
D)​A manager being rewarded on division revenues has no incentive to make good decisions for his division

Quizplus · Accepted Answer

Managers of profit centers are given a lot of discretion in their decision making. Profit centers are designed to operate as mini-companies within a larger organization, giving managers more autonomy to make decisions based on the specific needs and goals of their division. This allows for more specialization and adaptability in response to market changes. However, this also means that profit centers require a high degree of attention from corporate executives to ensure that their decisions align with the company's overall strategy and goals. Maximizing division profits may not necessarily lead to maximizing company-wide profits, as the actions of one division may have a negative impact on other divisions or the company as a whole. Managers being rewarded on division revenues do have an incentive to make good decisions for their division, but this must also align with the overall strategy and goals of the company.

​Which of the Following Is TRUE

Which of the Following Is TRUE