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Which Best Describes the Tension Between Central Control and Subsidiary

Question 38

Multiple Choice

Which best describes the tension between central control and subsidiary initiative in a large firm?


A) The central management must realize social capital in order to take advantages of the complex subsidiary relationships.
B) The central management s main motivation is value for the firm, so it will only give subsidiaries greater responsibility if they create value.
C) The central management may want to give subsidiaries control and encourage entrepreneurship and innovation, but it is difficult to distinguish between good faith subsidiary initiative and opportunism.
D) All of the answers

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