​Managers of Profit Centers Are Usually Given a Lot of Discretion

question 101

Multiple Choice

​Managers of profit centers are usually given a lot of discretion because

• A)​They always do an excellent job
• B)They rarely do a good job
• C)The company can never judge their performance
• D)​It is relatively easy to tie management pay to division performance

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Definitions:

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding over time.

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period of time.

Compounded Annually

Interest on an investment calculated once a year, taking into account both the initial principal and the interest from previous periods.

Maturity Value

The amount payable to an investor at the end of a bond's term or at the time of maturity, including both the principal and interest.