(a) 'Because of the possibility of goal incongruence , an optimal plan can only be achieved if divisional budgets are constructed by a central planning department. but this means that divisional independence is a pseudo independence Discuss the problems of establishing divisional budgets in the light of this quotation. (9 marks)

(b) ' Head Office' will require a division to submit regular reports of its performance.

Describe, discuss and compa re three measures of divisional operating performance that might feature in such reports.