The Evaluation of a Subunit Should Be Separated from the Evaluation

question 126

Multiple Choice

The evaluation of a subunit should be separated from the evaluation of the subunit's manager because

• A)a subunit always shows better performance.
• B)an excellent manager may be doing the best job possible in a poor subunit.
• C)poor performance by managers may cause subunits to perform poorly.
• D)GAAP requires separate evaluations of managers and the respective subunits.

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Definitions:

Trade Barriers

Measures implemented by countries to regulate or limit international trade, including tariffs, quotas, and non-tariff barriers.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often resulting in increased interconnectedness and interdependence.

Offshoring

The relocation of a business process or operation from one country to another, typically for lower costs or other strategic benefits.

Resource Markets

Markets where resources or inputs used to produce goods and services, such as labor, capital, and raw materials, are bought and sold.