A Manager Makes a Decision That Is Beneficial for a Specific

question 58

Multiple Choice

A manager makes a decision that is beneficial for a specific investment center but not for the entire organization.From the organization's perspective,this decision results in

• A)goal congruence.
• B)decentralization.
• C)contingent compensation.
• D)fixed compensation.

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Definitions:

Trust's Income

The income generated from the assets held within a trust, which may include interests, dividends, and other earnings.

Lease Cancellation

The process by which a lease agreement is terminated before its specified end date, either by mutual agreement or due to breach of contract.

Demonstrative Legacy

A demonstrative legacy is a specific gift of money with the direction that it is to be paid out of a particular fund or property, used in wills and estate planning.

Probate

The legal process through which a deceased person's will is validated and their estate is distributed to beneficiaries.