Consider the Following Data from Two Business Units of a Company,P

question 74

Multiple Choice

Consider the following data from two business units of a company,P and Q:
If both units were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 15%,what will the units likely decide?

• A)Unit P will invest;Unit Q will not invest.
• B)Unit P will invest;Unit Q will be indifferent.
• C)Unit P will not invest;Unit Q will invest.
• D)Unit P will be indifferent;Unit Q will not invest.
• E)Neither unit will invest in the projects.

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Definitions:

Unity of Direction

A management principle suggesting that all parts of an organization should be aligned and moving towards common objectives.

Home Building Company

A business organization that specializes in constructing residential homes for clients.

Complete Autonomy

The state or condition of being entirely independent, with the freedom to make decisions without external control or influence.

Pig Iron

A form of crude iron that is the direct product of smelting iron ore with coke and limestone in a blast furnace.