The Fitzhugh Division of General Enterprises Has a Negative Residual

question 56

Multiple Choice

The Fitzhugh Division of General Enterprises has a negative residual income of $540,000. Fitzhugh's management is contemplating an investment opportunity that will reduce this negative amount to $400,000. The investment:

• A) should be pursued because it is attractive from both the divisional and corporate perspectives.
• B) should be pursued because it is attractive from the divisional perspective although not from the corporate perspective.
• C) should be pursued because it is attractive from the corporate perspective although not from the divisional perspective.
• D) should not be pursued because it is unattractive from both the divisional and corporate perspectives.
• E) should not be pursued because it is unattractive from the divisional perspective although it is attractive from the corporate perspective.

---

Definitions:

Inhumane Acts

Actions or behaviors that are brutally cruel, lacking mercy or compassion, and violate basic human rights.

Virtuous Leadership

A leadership approach focused on leading by example, moral integrity, and the promotion of ethical behavior among followers.

Leadership Ethics

The principles and values guiding leaders in making decisions that have moral implications for their teams and organizations.