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15 3. What is a weakness of residual income? 16 a) It discourages goal congruence. 17 b) It can be misleading when comparing divisions of

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15 3. What is a weakness of residual income? 16 a) It discourages goal congruence. 17 b) It can be misleading when comparing divisions of different sizes. c) It routinely results in managers rejecting investment opportunities that would be 18 advantageous to the company as a whole. 19 d) It does not take cost of capital into consideration

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