Ortiz Is a Manager of BRS Corp

question 39

Multiple Choice

Ortiz is a manager of BRS Corp. Ortiz's division did not meet financial targets this year. Ramirez,manager of another division,has indicated that Ortiz's division incurred significant costs which resulted in Ramirez's division setting record profits for the year. As a result,performance for BRS as a whole exceeded projections. Which pairing of organizational structures for BRS and bonus for Ortiz is most plausible?

• A)cooperative structure; no bonus due to failure to meet divisional target
• B)competitive structure; no bonus due to failure to meet divisional target
• C)cooperative structure; a bonus for increasing organizational performance
• D)competitive structure; a bonus for increasing organizational performance

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Definitions:

Profit Margin

The percentage of revenue that remains as profit after all expenses have been subtracted from sales.

Investment Turnover

Investment turnover measures the rate at which a company or fund buys and sells its portfolio of investments, helping to understand its trading activity level and potential profitability.

Investment Center Performance

A measure of the efficiency and profitability of an investment center, which is a business unit responsible for its own revenues, expenses, and assets.

Operating Income

The profit earned from a firm's core business operations, excluding deductions from interest and taxes.