Use the following information of the Toro division of Hondo Corporation to answer the next question(s):
Total divisional assets are $800,000. The firm's minimum required rate of return is 10%.
-The decision-making power of segment managers is called
A) goal congruence.
B) segment autonomy.
C) managerial effort.
D) segment superiority.

Question

Use the following information of the Toro division of Hondo Corporation to answer the next question(s):
  Total divisional assets are $800,000. The firm's minimum required rate of return is 10%.
-The decision-making power of segment managers is called
A) goal congruence. 
B) segment autonomy. 
C) managerial effort. 
D) segment superiority.

Quizplus · Accepted Answer

Segment autonomy refers to the decision-making power of segment managers to make decisions within their own segment. This is usually accompanied by responsibility for the financial performance of their segment. The information provided about the Toro division's total assets and the firm's minimum required rate of return suggests that the division is likely to be broken down into segments, each with its own manager responsible for the division's financial performance. This is indicative of a more decentralized management structure with a greater degree of segment autonomy.

Use the Following Information of the Toro Division of Hondo