Tom & Jerry Are Running Hanna Barbera's Lemonade Stand as Two

question 78

Multiple Choice

Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers.Tom makes the lemonade while Jerry sells it.Jerry argues that Tom is transferring the lemonade to him priced too high,which forces him to charge the customers a high price,losing sales.What could be a profitable solution to this transfer-pricing problem?

• A)​Move the decision making to Hanna Barbera
• B)Turn Tom's division into a cost center
• C)Base Tom's reward on the company profits
• D)​Base Jerry's reward on the company profits

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Definitions:

Well-Learned Task

A task that an individual or team can perform efficiently and effectively due to extensive practice and familiarity.

Social Loafing Effect

identifies the tendency for individuals to exert less effort when working in groups than when working alone, due to perceived diffusion of responsibility.

Individual Work

refers to tasks or projects completed by a single person, focusing on personal responsibility and autonomy in achieving objectives.

Team Creativity

The collective ability of a team to generate novel and useful ideas or solutions.