"My Business Relationship with the Midwest Sales Rep Has Really

question 50

Multiple Choice

"My business relationship with the Midwest sales rep has really deteriorated. We used to cooperate; now we ________," said the manager of the Southwest region. "And I blame our new control system. Every month, managers across the entire enterprise get profit and loss statements for all divisions and business units. We look at one another's performance and are less likely to help one another when we know that our business unit or division may suffer a loss in profitability as a result. After all, promotions, salary increases, and bonus pools are tied to our profitability."

• A) compete
• B) promote change
• C) resist change
• D) feel threatened
• E) ignore one another

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Definitions:

External Support

Assistance or resources provided by entities outside of an organization, which can include financial, advisory, or technical support.

Normal Return

A rate of return on investment that is considered sufficient to maintain the current level of economic activity without additional profit.

Government Regulates

The actions taken by governments to control, direct, or manage different sectors or aspects of the economy or society, often through laws and regulations.

Economic Profit

The financial margin that results from subtracting a business's complete expenditures, both seen and unseen, from its gross income.