To Reduce the Excessive Focus of Subunit Managers on Their

question 68

Multiple Choice

To reduce the excessive focus of subunit managers on their own subunits, many companies compensate subunit managers on the basis of ________.

• A) both the operating income earned by their respective subunits and the company as a whole
• B) both the investing income earned by their respective subunits and the company as a whole
• C) only the investing income earned by their respective subunits
• D) both the net income and earned by their respective subunits and the company as a whole

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Definitions:

Postformal Reasoning

A stage of cognitive development beyond Piaget's formal operational stage, where individuals are able to think in more complex, flexible, and integrated ways, considering multiple perspectives.

Moratorium

An adolescent’s choice of a socially acceptable way to postpone making identity-achievement decisions. Going to college is a common example.

Multiple Perspectives

The consideration of different viewpoints, interpretations, or approaches towards understanding a particular situation or problem.

Firm Identity

The unique characteristics, values, and beliefs that define a business and distinguish it from its competitors.