Question #1
a) What is a transfer price?
b) How can firms use transfer prices strategically?
Question #2
a) What is goal incongruence?
b) How can using the metric "return on investment" for performance evaluation lead to goal incongruence?
c) What can a firm do to reduce goal incongruence caused by using "return on investment" for performance evaluation?
Question #3
a) List and describe the 4 "levers of control" that a firm can use to motivate behavior that is consistent with its strategy?