In General, If a Potential Transfer Has No Effect on Divisional

question 30

Multiple Choice

In general, if a potential transfer has no effect on divisional profits:

• A) no transfer will take place between the divisions.
• B) managers will be indifferent between making the transfer or not.
• C) the organization should not intervene to force a transfer.
• D) the optimal transfer price is the opportunity cost for the buying division.

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Definitions:

Insight Therapy

A type of psychotherapy aimed at increasing a patient's awareness of underlying motives and defenses to facilitate change.

Personality

The combination of characteristics or qualities that form an individual's unique character.

Unconscious Conflicts

Mental struggles that are not within the conscious awareness but influence behaviors and emotions.

Sigmund Freud

A pioneering neurologist and the founder of psychoanalysis, known for his theories on the unconscious mind, dreams, and psychosexual development.