When the IS Department Decides to Centralize Operations, Autonomous Units

question 86

Short Answer

When the IS department decides to centralize operations, autonomous units of the firm will be upset because it will be perceived as a loss of _________of their own special procedures for doing things.

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Definitions:

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Imputed Interest Rate

An estimated interest rate used to calculate the present value of future cash flows, when no explicit interest rate is provided.

Residual Income

Income that remains after all costs and expenses, including the cost of capital, have been subtracted from net revenues.

Riskiness Of Investments

The degree of uncertainty associated with the returns on investments, indicating the potential to lose some or all of the original investment.