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Top managers who wish to encourage decentralization will often make sure that both production and purchasing division managers understand all the facts and then allow the managers to negotiate a transfer price.
Observable Behaviors
Actions or reactions of individuals, directly visible and measurable, used in the study of psychology and sociology.
Covert Behavior
Behavior that is not openly acknowledged or displayed, often hidden or secretive, contrasting with overt behavior that is readily observable.
Overt Behavior
Any observable action or response made by an individual that can be seen and measured by others.
Mental Process
Internal cognitive operations that include thinking, perceiving, remembering, and decision-making.
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