If Performance Measures Are Perfect Proxies for Organizational Goals

question 78

Multiple Choice

If performance measures are perfect proxies for organizational goals,

• A)sub-optimization will be enhanced.
• B)sub-unit managers will strive to achieve organizational goals.
• C)sub-units can all be decentralized.
• D)residual income will rise.

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Definitions:

Unlimited Personal Liability

A legal status where an individual's financial liability is not limited to a specific amount, potentially involving all personal assets to satisfy debts or liabilities.

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the act.

Breach Of Trust

The failure of a trustee to act in accordance with the terms of the trust agreement or in the best interest of the beneficiaries.

Winding Up

The process of liquidating a company's assets and distributing the proceeds to the creditors and shareholders, ultimately leading to the dissolution of the company.