Relative Profitability Measures Should Only Be Used When

question 2

Multiple Choice

Relative profitability measures should only be used when:

• A) absolute profitability measures fail to provide a decision.
• B) absolute profitability measures cannot be used.
• C) a constraint forces a trade-off among segments.
• D) market shares are falling.

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Definitions:

Organization

A structured group of people working together towards common goals, often characterized by a formal hierarchy and standard procedures.

Divisionalized Form

A type of organizational structure that groups divisions within the organization based on products, services, or geographical markets.

Loosely Coupled

A system design principle where components are minimally dependent on each other, allowing for flexibility and easier modification.

Composite Structural Configuration

A method of organizing a company or system that combines different structures to maximize efficiency and effectiveness.