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

question 28

Multiple Choice

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

• A)​It decreases the incentives for the managers to make good decisions for their division
• B)It increases the incentives for the managers to make good decisions for their divisions
• C)It does not change the motivations for the managers
• D)​None of the above

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Definitions:

Volcanic

Pertaining to the processes associated with the eruption and formation of volcanoes and their emitted materials.

Basalt

A dark, fine-grained volcanic rock that is formed from the rapid cooling of basaltic lava exposed at or very near the surface of a planet.

Sedimentary Terrain

Areas dominated by sedimentary rocks, which are formed from the accumulation and lithification of mineral and organic particles over time.

Youngest

This term refers to the most recently formed or last in a sequence, often used in contexts related to geologic formations or the age of geological layers.