With bureaucratic control, business units are treated as profit centers, and managers of them are evaluated based on profit and loss.

Question

Quizplus · Accepted Answer

Market control involves the use of pricing mechanisms to regulate activities in organizations as though they were economic transactions. Business units may be treated as profit centers and trade resources (services or goods) with one another via such mechanisms. Managers who run these units may be evaluated on the basis of profit and loss.

With Bureaucratic Control, Business Units Are Treated as Profit Centers