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GoGo Airline's parent company is planning to take a cautious approach in launching MegaSaver. In response to the concerns raised by several shareholders, the parent
GoGo Airline's parent company is planning to take a cautious approach in launching MegaSaver. In response to the concerns raised by several shareholders, the parent company is exploring the possibilities of dividing its airline business into two distinct departments and monitoring the working capital of the new airline to prevent any liquidity crises.
- Critically evaluate the advantages and disadvantages of divisionalisation to the parent company
- Explain the various techniques the parent company can use to measure the performance of the proposed divisions and divisional managers
- Explain the importance of non-financial measures in measuring performance
- What are the costs associated with various elements of working capital and
- What are the methods of controlling various elements of working capital
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