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NEW QUESTION: 1
GHY has two subsidiaries. GHY-Motor manufactures car engines and GHY-Build designs and assembles cars. In the car industry it is common for manufacturers to buy parts, including engines, from other manufacturers.
GHY has granted GHY-Motor and GHY-Build full autonomy. GHY-Build is considering using an engine from another company for a new model that it is designing. GYY-Motor has a suitable engine, but it charges more than GHY-Build's preferred supplier.
Which of the following statements is correct? Select ALL that apply.
A. There could be significant non-financial issues associated with GHY-Build's decision to buy another engine.
B. The threat of dysfunctional behavior is largely theoretical and managers can be trusted to maximise shareholder wealth.
C. Parent companies should never grant subsidiaries full autonomy on matters such as intra-group sales.
D. Forcing GHY-Motor to grant a discount to GHY-Build could lead to dysfunctional behavior.
E. GHY should consider permitting GHY-Motor to charge part of the selling price on engines sold to GHY- Build to head office.
Answer: A,D,E
NEW QUESTION: 2
Which of the following BCP teams deals with the key decision making and guides recovery teams and business personnel?
A. Damage assessment team
B. Emergency management team
C. Off-site storage team
D. Emergency action team
Answer: B
NEW QUESTION: 3
A. Option D
B. Option B
C. Option C
D. Option A
Answer: B