If a Well-Managed Diversified Firm Uses Both Accounting and Economic

question 56

True/False

If a well-managed diversified firm uses both accounting and economic measures, it will be able to unambiguously evaluate divisional performance.

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Definitions:

Mutual Adjustment

A coordination mechanism where parties continuously adapt and negotiate their work and behavior with each other in order to achieve a common goal.

Liaison Roles

Positions or duties in which an individual acts as a link to facilitate communication and coordination between different parts of an organization or between organizations.

Integrators

Organizational members permanently assigned to facilitate coordination between departments.

Informal Communication

Refers to the casual and unstructured exchange of information between individuals or groups without following the formal channels of communication.