Differentiate between centralized and decentralized operations. In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from operations? Why would a firm use a balanced scorecard in evaluating divisional performance?

Understanding Business
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ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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  1. Differentiate between centralized and decentralized operations. In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from operations? Why would a firm use a balanced scorecard in evaluating divisional performance? Cite and give credit to the author that you are citing
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