A Transfer-Pricing Method Leads to Goal Congruence When Managers

question 84

Multiple Choice

A transfer-pricing method leads to goal congruence when managers:

• A)always act in their own best interest
• B)act in their own best interest and the decision is in the long-term best interest of the manager's subunit
• C)act in their own best interest and the decision is in the long-term best interest of the company
• D)act in their own best interest and the decision is in the short-term best interest of the company

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Definitions:

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth, or in cells, a membrane-bound organelle that contains the cell's chromosomes.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the passage of substances in and out of the cell.

Substances

Materials or items with distinct physical or chemical properties.

Cytoplasm

The gel-like substance within a cell, excluding the nucleus, that contains organelles and is the site of numerous metabolic reactions.