Question

Which of the following is a weakness of using a hurdle rate as a standard of evaluating the performance of a division?

A) The process is time-consuming.

B) The process is fraught with political intrigue.

C) This approach lets other firms determine what is and what is not excellent performance for a division within a diversified firm.

D) The use of such a single standard ignores important differences in performance that might exist across divisions.

Answer

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