Question

Managers of profit centers are usually given a lot of discretion because

A. They always do an excellent job

B. They rarely do a good job

C. The company can never judge their performance

D. It is relatively easy to tie management pay to division performance

Answer 1

. In this question, the condition is given that managers of profit centres are usually given a lot of discretion because.
Here option D is applicable because this option express.. it is relatively easy to tie management pay to division performance because the managers of profit centres are concerned about various factors which influence the business activities in the organisation so this is the only reason they have to make various choices and here the division performance attention with the attachment of the management is applicable.
Option A This option is not applicable because it is given that they always do an excellent job. It means they are talking about a positive sense which is practically not applicable every time.
Option B express they rarely do a good job it means they are presenting the situation there it is a question mark on the manager's performance so it is again not applicable.
Option C. Options are also not applicable because here the company can never judge their performance ..it means that company does not bother about what the manager is doing or not doing so again this option is not at all applicable in the organisation