Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

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Answer 1

Question

Chapter 14, Problem 50P

a.

To determine

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

b.

To determine

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

C

To determine

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

c.

To determine

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

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Answer 2

Question

Chapter 14, Problem 50P

a.

To determine

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

b.

To determine

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

C

To determine

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

c.

To determine

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

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Answer 3

Question

Chapter 14, Problem 50P

a.

To determine

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

b.

To determine

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

C

To determine

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

c.

To determine

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

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Answer 4

Question

Chapter 14, Problem 50P

a.

To determine

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

b.

To determine

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

C

To determine

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

c.

To determine

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 50P

a.

To determine

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

b.

To determine

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

C

To determine

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

c.

To determine

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

Answer 6

Chapter 14, Problem 50P

a.

To determine

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

Answer 7

Chapter 14, Problem 50P

a.

To determine

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

Answer 8

b.

To determine

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

Answer 9

b.

To determine

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

Answer 10

C

To determine

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

Answer 11

C

To determine

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

Answer 12

c.

To determine

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

Answer 13

c.

To determine

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

Solution Summary: The author explains the concepts of goal congruence and motivation of division executives and how the over-emphasis on the use of the ROI measure at Company A has resulted in increased divisional ROI and decreased corporation ROI

Describe the specific actions which the division managers have taken to cause the ROI to get increased in each of the division but decrease for the corporation.

Use the concepts of goal congruence and motivation of division executives and explain how the over-emphasis on the use of the ROI measure at Company A has resulted in the decline in the ROI of the company and the increase in cash and short term marketable securities.

Explain the changes that could be made in Company A’s compensation policy to avoid this problem.

Define whether the actions of the divisional manager to increase the divisional ROI but not giving importance to the company’s ROI is an ethical practice.

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Chapter 14 Solutions