When Activities Are Performed Inside Firms, Which of the Following

question 5

Multiple Choice

When activities are performed inside firms, which of the following is true?

• A)Centralized firms delegate decision rights to the lowest operational level
• B)The best performance measurement systems use only financial data because it is objective
• C)Individuals strive to manipulate the performance evaluation system to maximize their own benefits
• D)For efficiency, a manager should have both decision rights and decision control
• E)None of the above

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Definitions:

Innocent Misrepresentation

A false statement made about a material fact by a person who believed the statement was true.

Material Fact

An important fact that, if known, could influence a decision in a contract, transaction, or legal case. It is a fact that matters to the matter at hand.

Rescind

To revoke, cancel, or annul a contract or agreement, typically due to the discovery of errors or fraud.

Innocent Misrepresentation

A false statement made by one party to another without knowledge of its falsity, not intended to deceive, but which leads the other party to enter into a contract or agreement.