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Perry Corporation Is Composed of Three Operating Divisions

question 92

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Perry Corporation is composed of three operating divisions. Overall, the Perry Corporation has a return on investment of 20%. Division A has a return on investment of 25%. If Perry Corporation. evaluates its managers on the basis of return on investment, how would the Division A manager and the Perry Corporation president react to a new investment that has an estimated return on investment of 23%? Perry Corporation is composed of three operating divisions. Overall, the Perry Corporation has a return on investment of 20%. Division A has a return on investment of 25%. If Perry Corporation. evaluates its managers on the basis of return on investment, how would the Division A manager and the Perry Corporation president react to a new investment that has an estimated return on investment of 23%?   A)  accept accept B)  accept reject C)  reject accept D)  reject reject


Definitions:

Counterdependence

The rejection of help or support from others, often as a defensive mechanism to protect one's sense of independence.

Organization Stress Prevention

Strategies and methods implemented by organizations to reduce stress among employees and prevent the negative impacts of stress on organizational performance.

Primary Nature

Describes the inherent, fundamental traits or characteristics of an individual or entity, often innate rather than acquired.

Demands

The requirements, needs, or conditions that must be met in a particular situation, often causing stress or pressure.

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