What Is a Disadvantage of Top Management Intervention in Setting

question 5

Multiple Choice

What is a disadvantage of top management intervention in setting transfer prices between divisions?

• A)Top management may become swamped with pricing disputes.
• B)Division managers will lose the flexibility and other advantages of autonomous decision making.
• C)The approach reduces the benefits of decentralization.
• D)All of the answers are correct.

Recognize the role of personal appraisal in the perception and impact of stress.

Identify the physiological, emotional, and behavioral responses to stress.

Learn about the general adaptation syndrome stages in the stress response.

Understand the concepts of pressure, frustration, and burnout in relation to stress.

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Definitions:

Nominal Rate

The stated interest rate of a financial instrument, not adjusted for inflation or other factors that affect its true cost or yield.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, thus eroding purchasing power.

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk of investment returns.

Volatility Level

A statistical measure of the dispersion of returns for a given security or market index, often associated with the degree of risk.