​The Parent Company Would Want to Reward Managers Based on Division

question 35

Multiple Choice

​The parent company would want to reward managers based on division revenues because

• A)​The managers usually have the least information about their divisions
• B)It would incentivize the otherwise clueless managers about the daily activities of their divisions
• C)The managers usually have the best information about how to run their divisions
• D)​None of the above

---

Definitions:

Free Market

An economic system where prices are determined by unrestricted competition between privately owned businesses.

Housing

The physical dwellings or accommodations in which people reside, including various forms such as apartments, houses, and other residential structures.

Landlord Behavior

Landlord behavior pertains to the actions and decisions made by a property owner renting out property to tenants.

Binding Price Floor

A government-imposed minimum price set above the equilibrium price, leading to excess supply and potential market inefficiencies.