In a Divisional Corporate Organisation, an Ideal Inter-Divisional Transfer Price

question 40

Multiple Choice

In a divisional corporate organisation, an ideal inter-divisional transfer price should:

• A) maximise the profits of the selling division.
• B) maximise the profits of the corporation.
• C) ensure goal congruence, divisional autonomy and motivation.
• D) All of the given answers

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Definitions:

Forgetfulness

A common occurrence of temporary memory lapses or the inability to remember information or experiences, often due to factors like stress, aging, or lack of sleep.

Type A Personality Style

A personality pattern characterized by hostility, cynicism, drivenness, impatience, competitiveness, and ambition.

Cynical

An attitude characterized by a belief that people are motivated purely by self-interest.

Competitive

A trait or situation where individuals or entities strive against each other to achieve a goal or superiority.