1. All of the following are disadvantages of decentralization EXCEPT for ________.

Local managers make decisions that are not in the organization's best interests.

Managers spend time negotiating transfer prices for goods and services transferred between divisions and segments.

Local managers duplicate services.

Local managers have more authority and greater levels of job satisfaction.

2. From the view of the company as a whole, managers should accept investment projects that earn more than the ________. ________ should not be used for investment decisions.

return on investment; Return on sales

return on sales; Capital turnover

cost of capital; Return on investment

capital turnover; Return on sales

3. An example of a nonfinancial goal is ________.

		increase customer satisfaction
		increase profits
		increase segment margin
		increase required return on investment