Which Statement About a Powerful Subunit Is NOT True

question 84

Multiple Choice

Which statement about a powerful subunit is NOT true?

• A) It can get its members appointed to key leadership positions.
• B) It cannot influence key decisions indirectly.
• C) It is often able to use its power to maintain a dominant position even after its expertise is no longer critical to the organization.
• D) It can promote its objectives directly.

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Definitions:

Divisional Segment Margin

A financial metric that measures the profit or loss generated by a specific division or business segment, assessing its contribution to the overall company performance.

Common Fixed Expenses

Expenses that do not vary with the level of production or sales, and are shared by more than one segment or department within an organization.

Net Operating Income

Income from operations before interest and taxes, reflecting the profitability of a company's core business activities.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted.