The Reward System for Subunit Managers of Mature Businesses Should

question 86

Multiple Choice

The reward system for subunit managers of mature businesses should emphasize

• A)long-term competitive prospects.
• B)near-term profit and cash flow.
• C)success in product design and development.
• D)exceeding last year's subunit profit.

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Definitions:

Opportunity Cost

Opportunity cost is the value of the next best alternative foregone as the result of making a decision, essentially what you give up to get something else.

Benefits

Various forms of value or advantages that individuals or organizations receive, which can include health insurance, pensions, or profits.

Costs

The expenditure required to produce, acquire, or maintain a product or service, including materials, labor, and overhead expenses.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.