​Which of the Following Is FALSE

question 109

Multiple Choice

​Which of the following is FALSE?

• A)​Maximizing division profits can sometimes lead to reducing company-wide profits
• B)Managers of profit centers are given a lot of discretion in their decision making
• C)Profit centers usually largely run themselves
• D)​A manager being rewarded on division revenues has no incentive to make good decisions for his division

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Definitions:

Investment Projects

Initiatives undertaken by individuals, companies, or governments to allocate capital in order to generate returns or achieve strategic goals.

Interest Rate

The cost incurred by a borrower for the privilege of using funds, defined as a percentage of the principal value.

Indifferent

A state of having no preference between two or more outcomes; neutrality in preference.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.