If the Parent Charges the Subsidiary Administrative Fees, the Earnings

question 21

True/False

If the parent charges the subsidiary administrative fees, the earnings from the project will appear low to the parent and high to the subsidiary.

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Definitions:

Entitativity

The perception or degree to which a group is seen as a coherent, unified entity.

Coherent

Characterized by a logical, consistent, and orderly connection of parts, making them understandable and clear.

Drive Theory

Zajonc’s theory that the physical presence of members of the same species instinctively causes arousal that motivates performance of habitual behaviour patterns.

Social Facilitation

The phenomenon that people perform tasks better or more efficiently in the presence of others than when alone.