By Separating Their Corporate Headquarters into a Corporate Management Unit

question 31

Multiple Choice

By separating their corporate headquarters into a corporate management unit and a shared services organization,large corporations anticipate the following benefits:

• A)Better exploitation of synergy among the business units
• B)Economies of scale and greater responsiveness to user needs in supplying services to the business units
• C)Ensure standardization in the support services provided to business units
• D)Encourage the identification and transfer of best practices.

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Definitions:

Mutual Mistake

An error made by both parties in a contract that can render the agreement void.

Negligent Misrepresentation

A false statement of material fact made by a person who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances, typically used in legal contexts.

Voidable Contract

An agreement that may be annulled or declared void by one of the parties due to certain legal deficiencies or circumstances.