- 10 Marks
MA – Nov 2017 – L2 – Q1b – Performance analysis
Identify and explain five areas of relevance for management to ensure short and long-term profitability and survival of corporate institutions.
Question
b) The traditional methods of measuring performance of sub-units to achieve goal congruence include divisional profit, Return on Investment, Residual Income and Transfer pricing. These profit based measures do not reveal all about the long term survival of corporate institutions.
Required: Identify and explain FIVE areas of relevance that should engage the attention of management to ensure both short and long term profitability and survival.
(10 marks)
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