1) HarrisdivisionofMelbourneEnterpriseshasnegativeresidualincomeof$540000.Harris division'smanagementisconsideringaninvestmentopportunitythatwillreducethisnegativeamountto$400,000.Theinvestment:

Select one:

a) should be pursued because it is attractive from divisional and corporate perspectives.

b) should be pursued because it is attractive from a divisional perspective although not from a corporate perspective.

c) should be pursued because it is attractive from a corporate perspective, although not from a divisional perspective.

d) should not be pursued because it is unattractive from a divisional perspective although it is attractive from a corporate perspective.

2) Samuel Jackson isacallcentremanagerforTelstra-Phone Ltd,amobilephonecompany.Callcentreoperatorsathiscallcentreareresponsiblefor answeringcallsfromTelstra-Phone Ltd'scustomers.Somecallsareveryshort,relatingtosimpleenquiries.However,manyof thecallstendtobelonger,comingfromiratecustomerscomplainingaboutTelstra-Phone Ltd'sservices.Inthesecalls,customersareoftenveryemotionalandsometimesevenabusive.Calloperatorshavenocontroloverwhattypesofcallstheyget.

Samuel hasdevelopedanewincentivesystemforhercallcentrestaff.Underthenewsystem,callcentreoperatorsarerewardedifthey achievetwoperformancetargets:

(1)thedurationof90percentofthecallsislessthan4minutesand

(2)80percentofcustomersrateTelstra-Phone Ltd's'customerservicequality'as'excellent'.

Achievingthesetwomonthlyperformancetargetswillresultinabonusworth20percentofthecall operator'smonthlysalary.Basedonexpectancytheory,themajorlimitation(s)ofSamuels'srewardsystemis:

Select one:

a) theincentivesystemlacksvalence and instrumentality.

b) theincentivesystemlacks valence.

c) theincentivesystemlacksexpectancy and instrumentality.

d) theincentivesystemlacksexpectancy.