Answer: It can lead to dysfunctional decision making.
Explanation:
It may lead to a dysfunctional decision making. For example, a division with a current ROI of 30% will not wish to accept a project that offers a ROI of 25%, because it would dilute the current figure it has. However, the 25% ROI may be able to meet or exceed the company’s target.
Return on investment (ROI) increases with the asset age if the net book value (NBV) is used, thereby giving managers incentive to hang on to possibly obsolescent and inefficient machines. It may also encourage the manipulation of the profit and the capital employed figures to improve results, e.g to obtain a bonus payment. The use of different accounting policies can lead to confusion in comparisons e.g. depreciation policy.
Answer:
12%
Explanation:
Calculation for what is your rate of return in this investment.
Using this formula
Rate of return=Amount paid a year /Amount invested in
Perpetuity fund
Let plug in the formula
Rate of return=$3,000/$25,000
Rate of return=0.12*100
Rate of return=12%
Therefore the Rate of return will be 12%
The ethical decision-making metric will allow the manager to Disregard personal ethical considerations in the decision-making process.
In psychology, decision-making (also spelled decision making and decisionmaking) is considered the cognitive method resulting in the choice of a belief or a course of action among many potential various options. It can be either rational or irrational. The decision-making process could be a reasoning process supported by assumptions of the values, preferences, and beliefs of the decision-maker. Every decision-making process produces a final choice, which can or might not prompt action.
Research regarding decision-making is additionally printed below the label problem solving, notably in European psychological research. Decision-making can be regarded as a problem-solving activity yielding an answer deemed to be optimal, or a minimum of satisfactory. it's so a process that may be a lot or less rational or irrational and can be based on explicit or tacit knowledge and beliefs.
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Regarding globalization and globalization strategies, it is not true that c. globalization strategies could simplify the operations manager's job.
<h3>What does globalization do for businesses?</h3>
Globalization has allowed for businesses to grow because customers and suppliers are worldwide which allows for increased markets for sales. Value is therefore added to products and services.
Globalization is not easy on operations managers however. They would have to come up with more complex strategies to manage their company having increased reach.
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